Your Credit Report

What is it, what does the information say about you, and how does it affect your budget?

In order to determine your creditworthiness, lenders will review your credit report to see the history of your past activity on credit accounts, verify your income, and calculate your debt-to-income ratio. Before allowing money to be borrowed (either through a loan or credit card) creditors need to know there is a good chance you will repay what you borrow. Otherwise, the bank will be left holding the “bag,” costing them a great deal more than expected to make the loan.

Typically, lenders will obtain a copy of your credit report from one of the three main credit bureaus - Equifax, Experian, or Trans Union. Since information in your credit history can (and often is) utilized by companies to determine everything from whether you can obtain credit (and at what terms), to your eligibility to rent an apartment or be offered a job, regulations have been put into place to protect you.

The Fair Credit Reporting Act (FCRA) was passed into law to promote accuracy and ensure the privacy of information used in credit reports. Amendments to the Act expand your rights and place additional requirements on the credit bureaus. Businesses that supply information about you to the credit reporting agencies, along with businesses that use consumer reports, also have responsibilities under the law.

To see some of our client's most frequently asked credit report questions, along with our answers, visit our credit report FAQ's.

Genesis Financial Management, Inc. is a BBB Accredited Business. Click for the BBB Business Review of this Credit & Debt Counseling in Tampa FL