What To Know About Credit Reports

What is a Credit Report?

Credit reports are referred to as "reimbursement reports" or "credit history" or "credit reputation". In some cases, it can also be called a "Consumer Report".

Your credit history is used for many purposes:

The credit report is a history of all of your credit-buying and spending behaviors. It will show you were you spend your money, pay off your former loans and open new loans. It will show how much you have been charged on all of your old loans and deposited in your checking and savings accounts. It will also show your credit limits on loans, whether or not you used the full loan amount, and if the account was paid on time. The report will also show credit card companies, stores and other companies who have reviewed your report to check on your creditworthiness before and after you opened/cashed your account.

Could you be penalized for paying off your credit card?

There are several reasons you could be penalized for paying off your credit card. If you have credit card debt, it becomes a part of your credit history. If you pay off a credit card, it is no longer included in your credit history. Paying off a credit card brings your debt to zero. If you decide to include your credit card balance in a consolidation loan, then the balance on your card is brought to zero and will not change even if you use the consolidation loan to pay off your debts. If you never use your credit card again, then the credit line could stay the same. It is important that you make your payments on time. If you miss a payment or are a few days late and are still penalized, decide to include your payment as part of the loan so that the balance if you decide to do it yourselves.

What is negative information on my credit report?

Any information that is negative is listed on your credit report. These may include late payments and some balances. Large balances may be listed for a chunk of time each month. If you have certain negative accounts, you may not be able to get additional credit for several years. An aim to improve your credit score is generally accepted if you are at least making the minimum required payment on your accounts. If you are late on any bill, you will receive a letter from the creditor and it will include information on the late payment. It will also include the amount of the late payment and a brief explanation of the late payments. If there are other reasons for late payments, a brief explanation for each may be included. Such explanations are as follows, overdue payment: you were thirty days or more overdue on your accounts. Overdue test is 30 to 60 days overdue on your account and your accounts have not been paid as of the may be due. Most creditors have the ability to give you sixty days grace. You may still be able to obtain credit while you take your financial plan and do your obligation for 6 months. If you need credit during the grace period, many creditors will accept it. This is a very common situation. However, if you pay late over the years you will most likely receive a credit report. If this occurs, it will most likely not cause you further credit problems until you decide to make another late payment.