Credit report information affects everyone to such a great degree that it is critically important to know and understand what kind of information is in your credit report. That information will be consulted often, and in almost any situation where you might be making a major purchase or applying for some form of credit such as a credit card. If the personal information in your credit report indicates that your bills are not paid in a timely fashion, or that you have ignored them altogether, then you are not likely to be approved for any kind of credit application.
The Credit Report
Credit reporting agencies compile this data about you from every business you have dealings with and put it in your credit report, and the agencies are then reimbursed for their efforts when other companies purchase that report about you. This credit report will list all of your monthly bills, and how conscientious you are about paying them. While it provides no assessment or judgment about an individual, every credit report will list sufficient information about a person that a judgment can then be made easily by a company reviewing the report.
All the information contained in your credit report is used in compiling your credit score, which is a three-digit number indicating your overall credit worthiness. This credit score was developed by the three major credit bureaus in conjunction with the Fair-Isaac Company, so the scoring method is called the FICO method. It is composed of these factors – 35% based on your payment history, 30% based on your outstanding debt, 15% based on length of your credit history, 10% on credit you currently have, and 10% on new credit.
If you are yet unsure how credit report information impacts things, you may talk to a pro. They will use their experience and knowledge to provide you with useful information.