The Credit Report - Is it a Real Reflection of You?

The single most critical document used to determine your credit is your credit report. It's also the most abused source of information. Is your credit report an accurate reflection of you and your buying habits? More important, is it a true reflection of your past debt payment record?

With identity theft on the rise you may want to review your credit report every six months.

There are 3-4 major credit bureaus that businesses report your payment history to on a monthly basis. How your credit history is reported will make the difference between your getting a new or used car loan as well as at what interest rate. Your credit report determines if you are a very good or very poor credit risk. All that's needed to access this information is your social security number.

Some of the information listed on your credit report is: name of business that extended you credit, date opened, date closed, type account, terms, high amount loaned, balance, amount past due, payment profile, inquires from other businesses, ex-spouse accounts, judgments and dispute comments. As you can see if you don't know what's on your credit report you could be denied a car loan because of inaccurate information.

Within the volumes of information being sent to credit bureau's daily costly mistakes can be made. Computers make it very easy for auto dealers to access your credit report while you sit there or you're out on a test drive.

If you're refused a new or used car loan the lender is required to send you a letter of denial. This letter lists the name of the credit bureau(s) that provided your credit report. The salesperson will not and should not discuss the specific reasons for denial with you.

Under the Fair Credit Act you are entitled to a copy of your credit report. The report is free if you enclose a copy of the denial letter. You may also request a copy by calling the credit bureau and pay their fee.

Before going to purchase your new or used car get a copy of your credit report and review the information for accuracy. There is a dispute procedure outlined on the back of the report. You should review your credit report yearly.

It is not wise to visit several dealerships and let them run credit reports because numerous inquires are not looked upon favorably by lenders.

Questions to ask the salesperson: At what point do you run a credit report? If I give you a copy of my drivers license will you run a credit report? Do you run credit reports without written permission? What credit bureaus do you use?