What’s in it
- Personal information: your Social Security Number, employer, address and date of birth
- Credit information: credit limits, balances, payment history and amounts owed
- Public record information: whether you’ve been sued, have tax liens or owe late child support payments
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Why it’s important
To build your financial future
Your credit report generates a credit score – the better your history, the higher your score. Things that might lower your credit score are:
- Late payments
- Default
- Bankruptcy
With a lower credit score, you’ll:
- Have trouble getting more credit cards, renting an apartment, buying a car or house
- Pay higher interest than other people because of what’s seen as a “risky” borrowing history
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What to look for
Review your report for these key pieces of information:
- Accuracy -- In the accounts listed, amounts owed and the payment activity
- Marks against you -- Late payments, bankruptcies, and loan defaults all count ‘against’ your credit score
- Debt load -- You may find that you need to reduce your overall debt to improve your credit score
- Length of time – Most negative reporting stays on your report for seven years but should be removed after that
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What to do with the information
The good news is that, even if your report shows you need to work on your credit history, you can improve it:
- Always make on-time payments
- Pay off your balances whenever you can
- Review paid accounts, you may benefit from closing an account
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