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What is in a credit report?
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The following types of information are found in your credit report:
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Identifying information
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Includes your name, nicknames, current and previous addresses, Social Security number, date of birth, and current and previous employers. This information comes from any credit application you have completed, and its accuracy depends on your filling out forms clearly, completely and consistently each time you apply for credit.
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Credit information
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Includes specific information about each account including the date opened, credit limit or loan amount, balance, monthly payment and payment pattern during the past several years. The report also states whether anyone else besides you (i.e. a spouse or cosigner) is responsible for paying the account. This information comes from companies that do business with you.
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Know what to focus on when negotiating
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If you’re purchasing the car from a dealership establish the price of the vehicle prior to discussing the trade-in. If you have your financing in place, ask the dealer to match or beat your rate. Remember, the dealer wants to keep you happy and sell you the car. They are willing to listen to your needs and will try to match your terms. This will help you successfully negotiate a deal you can live with. |
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Public record information
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Includes federal district bankruptcy records; state and county court records, tax liens and monetary judgments; and, in some states, overdue child support payments. This information comes from public records.
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Inquiries
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Includes the names of those who have obtained a copy of your credit report for any reason. This information comes from the credit reporting agency, and it remains available for as long as two years, as per federal law.
While there are a number of good reasons to order, review and master the details of your credit report, one primary truth cannot be avoided:
Your credit report is your electronic fingerprint.
You can't escape it. It will always precede you. It represents your reputation in the personal financial community. If it is solid, it can be one of your best assets. If it is damaged, it can be one of your biggest liabilities.
The sad truth is that the majority of Americans have never seen their credit reports, though their credit profile affects practically every aspect of their financial lives. Even more disturbing is that of those who have seen their credit reports, a significant number don’t understand what they are reading.
Credit is not something to be feared, but rather a tool to build financial security. It is simply a different kind of investment portfolio.
As more and more Americans put their funds into the stock and bond markets, it is not uncommon to see people hunched over the morning newspaper, watching one of the financial news networks, surfing the net checking out their portfolios or doing research, or pouring over their monthly investment statements. Unfortunately few, if any, people realize that were they to dedicate just a fraction of the time they spend reviewing their investments to working on the development of a credit portfolio, they would dramatically enhance their ability to build the type of financial security they are striving for.
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