The credit is the equivalent of a grade assigned to you by the credit rating agencies according to your repayment habits. The more you pay off your loans on time and in time, the better your credit rating will be.
Having a good credit score is to have a good reputation with financial institutions. When the time comes to borrow large amounts, for example, buy a car or a house, having a good reputation with financial lending institutions is a clear advantage.
Conversely, having a bad credit score can hurt in many areas. If you have bad history or a low credit score, a lender may refuse to grant you a loan or charge you an interest rate higher. A bad credit score can also reduce your chances of getting a job.
Who can ask to see your credit report?
Any person or organization wishing to check your reliability in terms of payment, for example:
- A financial institution, before granting a loan;
- Trade before you sell on credit;
- Owner before you rent an apartment;
- An employer before you hire;
- You to verify the accuracy of the information are enrolled.
The credit bureaus do not transmit the information contained in your credit report only to persons or organizations that have received permission to make your request. When you sign for a loan or credit card, you authorize the institution to generally check your credit habits.
What we find on your credit file
- Your name, address and date of birth;
- Work experience (name of employer, job title, length of employment, income);
- Your credit situation: late payments, outstanding debts, debt payment history, available credit;
- Information on public financial operations concerning you (unpaid taxes, bankruptcies, judgments against you);
- List of organizations or individuals who have requested information about your creditworthiness.
How long your credit information is stored?
The credit bureaus keep information of 6 to 7 years.
To have a good credit score, you must:
- Pay your bills as soon as possible;
- Pay the balance of your credit card every month on time;
- Borrow only the amount of money you need, based on your ability to pay;
- Repay your loan on time and as soon as possible so you get a good credit rating and save you interest.
How to get a copy of your credit report?
You must make a request to a credit reporting agency:
- Online; receipt of the document is almost instantaneous, but fees are charged by the credit rating agencies that offer this service;
- By mail, the waiting period is compensated by the free service.
You must provide proof of your identity to the credit reporting agency. Contact with it to see what evidence is needed to obtain a copy of your file.
To correct an error in your credit report
Contact a consumer protection agency to obtain information on how to request a correction to your record.