What is the credit report and how does it read?

Many times we do not know for sure what the credit report is , but it sounds to us that it is related to the Credit Bureau or that it has something to do with the Society . However, did you know that this document is extremely important to make a diagnosis of our financial health? That is why we should not miss the opportunity to review it.

Why is it important to know the credit report?

Why is it important to know the credit report?

Imagine that you occupy your free consultation, because you are entitled to one every 12 months while the following are paid, and when you download the document you are surprised to see all the credit accounts you have had, as well as those that are still active. That’s right, from mortgage and bank loans, to the plan you have with your cell phone is there.

As you can see, knowing the credit report allows us to understand in detail the movements and have a clearer vision of how the accounts have behaved. Likewise, with this information we can give a better follow-up to the debts and avoid losing control of them because identifying the red bulbs and the amounts will make it easier to get to work.

Thanks to the credit report, we can access new financial products, as it is one of the main documents requested by financial institutions to analyze our payment behavior. That is, if you have a good track record, they are likely to approve the credit or give you one with lower interest, but the opposite is also possible.

How do I read my credit report?

How do I read my credit report?

Like any document, your credit report has several sections in which you should pay attention. This time we will focus on the points that you cannot miss to have a general diagnosis of your financial health.

In the credit report you will find:

  • General information: Your personal data appears here such as name, date of birth, folio number, address and the date on which your registration was opened in the Credit Bureau. That is, from the first moment you requested some financing or started using your credit card, your information began to be collected on this basis.
  • Messages: Here you will find relevant notifications about your Bureau information. For example, if your RCF or your address does not match the information you provide, a message will appear to address the problem.
  • Credit summary: In this part you will find the credit registry in your file. From each one you will find the name of the institution, number and type of account, status, date of update, current balance and if you are current or not.

To classify the latter, the credit report has a system of icons that mean the following:

If you believe that something is not in order, you are entitled to two free claims per year to challenge your report and request a change.

Credit Detail

This is more complete deployment of your accounts and you will see the following sections:

  • The grantor : refers to the institution that reports to you before the Credit Bureau and that can be from financial institutions such as banks, to commercials such as cell phone companies, among others.
  • Account No .: Contract or account number with which the credit was granted.
  • Type of Credit: It is the type of contract signed, for example: Credit card, line of credit, credit or auto lease, real estate, personal loan, etc.
  • Account: refers to the type of credit acquired between: Revolving, No Preset Limit, fixed or Mortgage.
  • Responsibility It clarifies the responsibility you have on the credit between: individual, joint or jointly liable.
  • Payment history: the payment history has an observation key for each month in each year, and they are read as follows:

The credit report, in the payment history, has other parameters that you can consult directly in the section that explains the Credit Detail.

How to request my Credit Report?

How to request my Credit Report?

Ordering this document is very easy. You just have to access the Bureau page and select “special credit report”. There you fill out the form with your data and, if you have not consulted it in 12 months, it is likely that you will still have the free download available. Otherwise, you will have to pay a fee to check it. Remember that if you ask for it continuously, this will also be registered and could give a bad signal to the institution asking for a loan.

Do not forget that knowing the history is an important part of a financial diagnosis. If you do not know the information found in your credit report, it may take time to identify a problem with your accounts or find out why the institution rejected your request. In addition, if you can no longer with your payments, it is best to have your papers in order to find a solution to your debt problem.

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