A credit report is run on a buyer when he or she needs to buy something
that will take a long-term loan, such as an automobile or a house. The
credit report can come from one of three agencies – Equifax, Experian, and
Trans Union. Each of these three agencies uses their own techniques of
arriving at a credit score and receiving credit information, so attention
should be paid to all three. A credit report score can go up to 800, and
an increase of 50 points is a big one, enabling borrowers to get loans
they previously were denied, and getting loans at much better interest
rates. A 1% drop in an interest rate on a $150,000 house, for instance,
may drop a payment by over $100 a month, saving the borrower over $35,000
over the life of the 30-year loan.Each of these credit agencies have taken
all the financial information they can find about you and tabulated a
credit score from those results. Information will include your current and
previous home addresses and employers, the credit cards and loans you
have, and any late payments made over the last ten years. These agencies’
credit reports will be very similar, but there will be differences, as
they all make mistakes, and the banks and credit card companies giving
them the information make mistakes, too.Here’s where you can improve your
credit score.
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