What Your Credit Report Says About You

Written by Brett Bruce

After reading your report, you need to know what the information actually says about you to your potential creditors. There are several key things that a credit report reveals about you.

First, your report will show how much credit you have versus how much credit you’re using. For example, it will identify accounts where you have reached your maximum limit. If you have a lot of accounts at the max, your credit may be adversely affected.

Your report also tells creditors whether or not you tend to make your payments as agreed. This is really important to any entity who wants to lend money to you.

The report will also reveal what type of credit you’re trying to get. The inquiry section tells creditors a great deal. In general, it looks bad to have a lot of credit inquiries. It’s best to only apply for credit that you really need.

When you look at the big picture, your credit report is going to give a creditor information to decide whether or not you’re a safe bet. Will you be the type of person who pays on time? Or will you be someone they’ll have to hunt down to get paid?

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