Credit Reports and Scores

Credit Reports: Credit Reports are provided by credit bureaus that documents a person credit payment history and used by a lender to determining a loan applicant financial soundness.

Credit Reports provide the following information regarding individual:

• Personal Information
• A Consumer Statement
• A summary of accounts
• Individual's Account History
• Bank information regarding any accounts that were closed for derogatory reasons
• Public information regarding Bankruptcies, judgments and secure loans
• The name of creditors who have made account inquiries
• A list of creditor contacts

Credit Score:

A credit score is a rating that is used to anticipate how like you are to pay back a credit on time.

Credit score starts with the information about individual from his/her credit report.

A scientific equation - called a scoring model - is then used to create individuals credit score.

Creditors rely on credit score to help determine whether or not to extend a loan.

Credit score can affect the interest rate quoted on the loan you request.

Things due to which credit score is normally affected are:

• Payment history
• Credit utilization
• Length of relationship with creditors
• Types of credit established
• Recent credit inquiries

Interpreting credit scores:

Credit scores ranges from 300 to 900

Score 600 or Higher is considered a good credit score

Tips to keep a good credit score:

• Pay all your bills on time.
• Only apply for the credit that you need.
• Don't use too much credit that is available to you.
• Order your credit report every year and dispute any errors you find.

          http://www.consumerfinance.gov/askcfpb/315/what-is-my-credit-score.html

Question: What are the other things a person needs to keep in mind to keep a good credit score?