Your credit report contains all your financial and personal information which is used by potential lenders and creditors in order to monitor your reputation and credit score in the market. In the layman language, it carries your financial worthiness and identity in the form of text. Credit report is the history sheet of your past activities that you have done regarding financial terms.
Below mentioned items serve as major parts of your Credit Report card.
1. Record of Payment: Your credit report includes your payment history especially the late payment that you make and keep record for seven years.
2. Record of your Debt Status: The most important thing that your report contains is your debt status. It records all your due installments of loans such as home loan, or vehicle loan. It also includes your credit account status including age of accounts. As far as recording installments data is concerned, it is only included to keep track of your assets. The main thing for recording is your credit account status which measures your credit score.
3. Personal Information: Your credit report contains all personal information that is needed to add in the report such as your income history, employer, residence history, etc. All these information is very useful for your potential creditors in order to judge your worthiness. In case, you have changed your address or job then your credit report should include that information. Additionally, it contains numbers of your open accounts and installment loans that you have paid off earlier.
4. Inquiries Regarding Credit: How many times you attempted to get credit via credit cards or loans will be listed on your credit report card. Usually, people apply for loans or credit cards at a time in order to find out the best one. In this process, they choose one and cancel others. These attempts will be recorded in your credit report card which does not look impressive.
5. Legal Information: Your credit report contains information about every legal judgment of your life. In case, you are declared bankruptcy, foreclose on house, having lawsuit against you filed in court successfully, etc, all these information will be added to your credit report card. So, your potential lender will be aware about this information before allowing you credit. Therefore, tell the truth to the creditors and lenders before showing your credit report.