What is a Credit Report?
Like most people, you might ask yourself, “What is a Credit Report?” If you are trying to purchase a vehicle, you probably heard about a credit report at some point. At most dealerships, your credit report comes into play when making such large purchases. Since it is such a large part of your life, you should know what it is all about and what you can do to improve it. Knowing this will help you to take control of your finances.
A credit report is a report of your credit history and credit activity. It will tell people about activity related to your credit, such as things that have gone unpaid. If it is connected to your credit, it is on your credit report. This is important for lenders since they deal directly with money. They will look at a credit report to determine your trustworthiness. If your credit does not look good to them, they may not want to lend you any money. For vehicles, this means that you cannot receive any financing. With traditional lenders, there is no way around this when you have bad credit.
There is less chance of approval for vehicles, homes, and other major expenses if you have poor credit. The major lenders will not want to give you money if they feel you cannot pay it back. To change this situation, you will have to begin building your credit. Since there are three bureaus, you must look at each of them. One good idea is to go to a location that does not base your approval on your credit but still gives you access to major purchases. This will help you to get what you want, such as a vehicle, without you having to worry about your credit report. With regular payments, and if the company reports to the credit bureaus, you can also see your credit improve.
Next time you find yourself wondering, “What is a Credit Report?” just remember your credit. Anything connected to your credit history is part of your credit. The better your credit history, the better your credit report and score will be. A good credit score will help you to finance many of the larger expenses that you need.
If you do have bad credit, read this to get ideas on how to rebuild your credit.