A credit report generally includes things like accounts which have been closed, delinquent accounts, accounts which are in collections, settled accounts, items that have been left with a negative balance and a number of other things. Many people are shocked to see the things that are included in a credit report. There are also some public records such as home foreclosures, car repossessions, rental evictions and things of that nature which will show up on a credit report from time to time. Many people have to ask,”What is a credit report?” because they really have no clue and are often left with many questions.

Credit Reports Explained

In order to understand the information contained within a credit report it is important to understand and be fully aware of what is a credit report and how it affects you. There are three main agencies which report credit. These agencies are called TransUnion, Experian and Equifax. Companies and businesses that you deal with send those agencies a variety of information. Even payments you have made yet made late are often reported to these agencies. Late payments are almost as bad as not paying at all as they will cause your report to look worse. For example, when you are paying off a car you have received financing on, each payment will be reported to the credit reporting agencies. If your payments are always on time this is a good thing, if they are not then obviously this is a negative item.

What If an Item is Incorrect or False?

You always have the right to request an item that is found on your credit report be investigated. Identity theft and errors on credit reports are not uncommon. The first step is to get your credit report and go over it line by line. If you notice something is there that should not be, such as an account you have settled that is still showing a negative balance then you should bring this to the attention of the credit reporting agency at once. In addition, if you notice something that you had nothing to do with or no recollection of you should report this as possible fraud and have the matter looked into. Sometimes mistakes or fraudulent items will take some time to get resolved so the sooner you alert someone of the problem, the faster you will have whatever the item is taken care of.

If you have often wondered “What is a credit report?”, hopefully we have helped to answer your question here. For more information on credit reports and how they work you can always contact one of the three credit reporting agencies to ask them for further guidance on the matter. Just remember that your credit report is what people look at when they want to know what your history is in terms of how you make your payments and whether or not they are made in a timely manner.