All about Credit Reports - What Why When And How

With the economy doing poorly, consumers are turning to one thing to remedy their lack of wants: credit cards. While credit cards can be good, in fact very beneficial, they can also be destructive. How you paid off your credit card balance and managed your debt will show up on an extremely important document-your credit report.

A credit report is a record of your credit history. This record which shows the actions of a consumer are vital to determining their credit worthiness, or their ability to be trusted with money that isn't theirs. It is a federal law that every person is able to receive a copy of their credit report once every year. This can be obtained through a major national consumer reporting company: Equifax, Experian, and TransUnion.

You may be asking though, why even obtain a credit report? Seeing your annual credit report is important for you to see before taking out any type of large loan, whether for a house, a car, applying for a job. This document is free and extremely helpful for your future. There is no reason not to obtain a copy.

There are various ways you can ensure that you will be pleased with your credit report. For instance, be sure to pay off your credit card bills on time. This shows banks and lenders that you are trustworthy and responsible. Also, pay off as much of your credit card bills as you can each payment. If, for instance, you can pay each payment off in full each month, you will have a much better overall credit report then someone who pays off small amounts.

It is also important to abide by the laws of the land and be honest in all transactions. Sometimes a credit report may not accurately depict your credit history, so keep watch on your transactions and all major activity that goes on with your bank accounts and loans; by doing this, you may find that you need to dispute

If you see something on your credit report that does not seem correct, you can dispute credit report information. To do this, you must submit in writing your claim to both the credit buerou that provided you with the credit report and also to the information provider. As you dispute credit history, you are able to ensure that your credit report is accurate and will best allow you to get the loan you need.

Source: http://www.sooperarticles.com/finance-articles/credit-articles/credit-reports-what-why-when-how-308250.html