Take Charge of Your Credit
Stay Informed, Knowledgeable, and Aware
How Does Credit Report Work?
Financial independence is everyone’s dream, but only a few realize it. This is because not many people know that much of their financial freedom is tied with their credit reports. A credit report is a detailed summary of your credit history generated separately by the 3 credit bureaus (Equifax, TransUnion, and Experian). They collect and maintain your credit history as reported by your creditors and lenders to keep track of your creditworthiness. A credit report includes:
- Your personal information
- Lines of credit details.
- Public records such as bankruptcies
- A list of entities that have asked to view your report.
Since not all lenders and creditors report to all three credit bureaus, your credit status will likely vary. Hence, it is crucial to ensure that the information in these reports is accurate and up to date because it works as a measure to assess your financial reliability.
Credit Report – Why is it Important?
As your credit report records your past and current debts, including payment history, it is vital to ensure that it is complete and accurate. This is because it can impact numerous areas of your life, such as the ability to:
- Rent an apartment
- Mortgage a home
- Buy a car
- Get a personal loan
- Get a job
Potential landlords are likely to review your credit report to determine lending rates and your ability to make rental payments. Likewise, some employers check credit reports as part of the job application process.
Needless to say that your credit report is the only information source that lenders have to calculate your credit score and determine how likely you are to default on the loan or payback.
Credit Ranges – Where You Stand
As a credit score (a three-digit number) helps creditors determine your creditworthiness, it is crucial to know your score, what it should be and how to improve it. Furthermore, it will give you a clear idea of whether you’ll qualify for a new loan or credit card. Put simply, it affects your financial outcome.
According to the FICO credit score model, the range starts from 300 to 855.
Ideally, your score should be somewhere in the range of very good or exceptional if you want to qualify for unsecured loans or financial products at best terms and low-interest rates.
How to Improve Your Credit Report?
To improve your credit report, focus on the following:
- Pay bills regularly and promptly
- Maintain reasonable, unused credit
- Invest in credit report monitoring
At Master Credit Report, we assist clients with credit reports. From reviewing debts on your credit report to matching them with our monitoring services to identify inaccuracies and dispute errors that could be hurting your report, we help you with them all.
Our team ensures that your reports are accurate, complete, and up-to-date without any discrepancies. As we monitor your reports, it further helps our team to provide you with quality advice on credit repair and improve your credit score. Plus, it also helps minimize the risk of identity theft, suspicious activities, and report changes.
For more information or service assistance, contact us today.
You’re only a step away from realizing financial stability.