Information about a credit reports

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The Experian credit report is the best resource that consumers can use to determine how well they are doing financially. Everyone who is over the age of 18 has a credit history. When a person decides that they want to purchase something on credit then they will have their report run by the lender. It takes a few minutes for this to be done. It is important for people to pay attention to the credit score that they have.

 

Most lenders have a threshold score that applicants must reach to be approved for a line of credit. The score is made up of several factors. The first is the debt ratio. This is the amount of debt divided by the monetary amount of credit line that is available. The rule of thumb is the more of the credit lines that are used, the lower the credit score will be.

 

The second factor is the length of time that a person has been in debt. The report lists all of the open and closed accounts that a person has in their name. Accounts should not be closed until they have been paid off in full. It is not a good idea for people to have many open accounts. This is because the more credit that is available to people, the more money they can incur in debt.

 

The third factor is how often the person pays their bills. The report lists other relevant information such as when the account was opened and if it is currently being paid on time each month. Individuals that do not pay their bills on time each month will see this on the report.

 

Once a payment is over 30 days late, the credit bureau makes a record. This means that potential lenders will see how frequently consumers are late meeting their financial responsibilities. It is crucial for people to monitor their information to ensure that there are no discrepancies.

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