December 10, 2006, 10:58 am

What to do with your Credit Bureau

by: admin    Category: Credit Rating & Credit Bureau
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An important step in the process of improving your Beacon Score is to obtain a copy of your Credit Bureau and to analyze it. There are several points that you must consider. A careful review could result in increasing your score instantly. The first step is to know how to read this report.

There are five different parts in the Credit Bureau. The first one is a global summary of your credit behaviours. It will show how many months you have been using credit in any forms, the number of late payments, your worst credit rating, the total of credit authorize versus used and much more. This section will help you to pinpoint some important factors influencing your score. We will talk about how you can achieve this quest later on. For now, we will focus on the Credit Bureau itself.

The second part includes personal information; your latest reported address, jobs and even your income could be shown. It is a useful tool to know if an individual is jumping from one job to another or to find out that the applicant, a manager in a well-known company, just quit his last job as a taxicab driver. As your credit bureau will be pulled-out every time you apply for a loan, it is in your best interest to tell the truth to your banker. He will validate the submitted information with the credit bureau and other tools. Therefore, it is essential to be aware of what lies in this part of the report. You may contact the reporting agencies to rectify any mistakes. At the bottom of this section, you will also obtain your credit score. This three digits number could influence the whole credit decision by itself. It is important to understand that you can’t have your Beacon Score modified. You may only rectify the factors that fall in its calculation.

The third part might not reflect on all credit bureau. This section shows any judgement against the customer or any fraudulent activity around the individual’s identity. It helps to validate if the person have committed a fraud or have been victim of fraud in the past. If this is the case, the real client’s phone number will appear in this section and the banker will validate the credit request by calling the specified number.

The fourth section reflects any accounts you may have with a financial institution. It shows the credit cards, personal loans, lines of credit and some mortgages. You will also find out plenty of information on every account. You can see the date of opening, last date it was reported to the credit reporting agency, authorized limit, balance used, the type of product and the details regarding any late payments. This information is shared between the financial institutions and the credit reporting agencies.

The last section show the inquiries for credit made in your life. The bank will see when and where you applied for credit. This is very useful to know if an individual is shopping around or might have opened a credit account recently with another institution.

This review of a credit bureau should help you understand how to read this report. Therefore, you are now ready to pinpoint what influences your Beacon Score and try to improve it.

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[…] to read your credit bureau, I previously wrote two posts about how to order your credit bureau and how to read your credit bureau. I will continue this series on how to improve your credit score in the following weeks. Please […]