A credit report is maintained for virtually every consumer in the United States who has had any financial activity of any kind and/or who has had a credit card or banking relationship of any type.
A credit report is based on a numerical rating system with the higher a score (an excellent ranking is considered 750-850) the better. Most financial institutions refer to a consumer's credit report as they are making a decision on providing a loan and the interest rates that you are provided can in many cases also be based on your credit report or score.
The actual credit report is not maintained by your local bank or mortgage broker but by a third party that combines and integrates information that is compiled on your payment history by virtually all financial institutions that you work with in any capacity.
A consumer can ask for and receive a free copy of their credit report from virtually any financial institution that you are working with and/or generate one from any number of online resources. In years past a credit report could be difficult to generate but this is no longer the case. A free credit report typically contains the following contents:
Personal information: it contains details like name, address, social security number, date of birth, license number and employment information etc.
Banking Relationships: this category is about your relationship with the bank on monetary terms. The details mentioned are type of account, the date you opened the account, the credit limit, the account balance the history of your transactions.
Inquiries: this is the section that contains a list of the people or firm that had an access of your credit report. It contains both the 'voluntary' and 'involuntary' inquiries. It means the ones whom you allowed, and sometimes the creditor asks for the report to keep you updated with other information.
Public records: it is something not about you but a general record on issues linked with credit cards such as bankruptcies, suits, foreclosure, lines and judgments.
If you discover errors in your credit report you can in fact ask the vendor who has made the mistake to "repair" or modify your credit report so that it is accurate. But, you must in most cases provide sufficient documentation to substantiate when and where a mistake was made on your credit report and the process can be tedious and time consuming as you are in many cases working with large bureaucratic companies who do not move quickly.
About the Author: Lee Traupel is a Well known Author who writes for www.411debtsolutions.com