No matter what level of income you earn, handling credit is a necessary skill. Your credit report and credit score can affect your ability to purchase a home, rent an apartment, buy or lease a vehicle, find good insurance rates, or even get a new job. A credit report review is the first step towards stabilizing your credit.
Your credit report is a compilation of data that is gathered and updated regularly by credit reporting agencies or “credit bureaus.” The credit reporting agencies sell this information to lenders and other companies and organizations to help them determine how you manage credit before lending, insuring or even hiring you.Not only is it vital to regularly check your credit report to ensure your financial standing, it’s equally important to check your report to protect yourself from fraud, inaccurate reporting, and identify theft.Here’s the information included in your credit report:
including your Social Security number, address, and date of birth are used to ensure the right information is matched with the right person. It can also help detect and prevent identity fraud.
is a record of where you worked and for how long.
details your current outstanding and closed credit cards and loans and how you’ve handled payments.
shows who has requested your credit report.
provide information that includes collections accounts, bankruptcies, and late child support payments.
Most lenders use a mathematical formula to generate a “score” to help them determine if you are a good credit risk. The most frequently used version is the FICO® Score created by Fair Isaac and Company. A FICO® Score is a snapshot of your credit risk picture at a particular point in time. FICO® Scores range between 300 and 850 with higher values indicating a lower risk to lenders.
Bottom line. Pay your bills on time, and in full each month. The result? A higher credit score which equates to paying lower interest rates and keeping more money in your wallet.
NFCC Certified Credit and Debt Counselors will provide you with a complete overview and understanding of what’s on your credit report, and give you feedback and guidance on ways to improve your credit worthiness.
After completing a credit report review session you will have:
Many people wonder if consulting with a financial counseling agency will affect their credit score. Your credit score is based on the information contained in your credit report. Simply obtaining counseling, whether it is for debt, housing or other financial issues, has no bearing on your credit score, it is not reported to the credit bureau.