Facts about Credit report Consumer

Many people realize that their personal credit worthiness is tracked on the basis of credit reports, but there are very few who know something about it or their FICO scoring. Fair Isaac & Co. developed this score for evaluating the capacity of an individual to pay back loans. FICO score can range from 300 that is the minimum point to 850 points and it is used as a main factor for more than 75% credit applications, according to one of the main credit-reporting bureau Equifax. The consumer credit report that is provided by Equifax provides an overview of the type of information that you can obtain from any of the major credit reporting bureaus. There are seven sections in the Equifax report. The first section has data like previous and current address, employment history and social security number. All such data can be very important for identity thieves so make sure that you protect this information by checking if it is accurate and correct and just in case you are discarding it, shred it. The second edition of the report has the summary of the credit history of the client. It consists of the number of accounts closed or open that the applicant has, type of account, credit inquiries done in the last 12 months and the number of accounts that are past due and the ones in good standing. More accounts mean high credit score will not be applicable.

When the financial institutions review consumer credit report before approving a loan they have this assumption that a particular customer will use all of the credit that is there on his or her credit card and provide monthly payments required for servicing the debt. In case you are having a dozen credit cards with ‘0 balance’, then there are strong chances that you will be able to make 2000 dollars mortgage payment every month, but the bank will look at this situation in a very different manner. Your credit worthiness will be diminished if your ability of making monthly payments with a dozen credit cards in addition to a 2000 dollars mortgage is factored in by the bank. A copy of consumer credit report can be obtained by a consumer credit agency and this is one thing that every borrower should keep.