Finding Out Your Credit Rating

 

You can find out what is in your credit report. Usually there is a small fee involved but not always. Banks and other lending institutions use the information in your credit report to decide whether or not to make you a loan and what interest rate to charge you so having a good credit report is important. So, you ask, what exactly is in my credit report?

 

The answer is: everything that matters.

 

Your name, current address and phone number and marital status are there of course. The name of your current employer, your current income and your employment history is there, as well.

 

All of your debts and your payment history, any loans you have defaulted on, the total of all debt on credit cards, bank loans and mortgages are included. If you have had any judgments against you in court, those will be there.

 

Lending institutions view this information in different ways. Some place more importance on one thing… some on another.

 

They all combine the information on your credit report with the information on your loan application and come up with a credit score number. If that number is below what they have set as acceptable they will do one of two things:

 

1. Deny your Loan Application, or
2. Make the loan at a higher interest rate.

 

When shopping around for credit do all the research about the lending institutions that you are considering as you can.

 

Every time you make an application for a loan, whether you obtain the loan or not, that information will be included in your credit report. If there are too many applications for loans in your report, lending institutions see that as a red flag.

 

Attention! The information in this manual is NOT financial advice. It is information only and should be considered as such.