Maybe you’re looking to buy a car after your old one has finally broken down. Perhaps you’re looking to rent an apartment after finding the perfect place downtown. Maybe you’re looking to lower your cost of living by cutting down on your utility bills. There are any number of different actions you may engage in that might require you to submit your credit score.
Whatever the case may be, you don’t want to be caught with a bad credit score and certainly don’t want such a thing to take you by surprise. That’s why you’ll want to make sure that you take a look at your credit report ahead of time. Still, that won’t help you if you don’t know what any of those numbers mean. So, what is included in your credit report, and why does it matter?
Among the items included in your credit report are:
- Personal information such as your name, date of birth, and Social Security number
- Your credit score
- Your current bank accounts as well as any former ones
- Any inquiries into your financial affairs, including any debt collection items, court rulings, bankruptcies, etc.
It is worth noting that certain things are not included in your credit report, including:
- Tax liens
- Payments on regular expenditures such as monthly home and utility bills
- Your investment portfolio
- Your income
Why it Matters
Why does all this matter?
Well, for one thing, as you probably know, you need a good credit score if you’re going to rent an apartment, get a loan for a car, or do any number of things that require good credit. You’ll want to review it regularly to make sure that your credit is in good shape. In addition, you need to make sure that nothing untoward has happened with your account, such as a data breach. Firms such as Equifax have been hacked in the past, so you’ll want to check your credit reports regularly and be careful about what firm you hire to provide them.
With this in mind, you’ll be able to approach your credit report the right way.