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You might be able to fool yourself into believing that your credit is better than it actually is, but you most likely cannot fool a potential creditor.
Creditors want to know a few things about your personal financial reputation and personal character before they approve or reject your application for credit and most everything they need to know is revealed within your personal credit report.
For this very reason it is very important that you review your credit report at least once a year, and at best twice a year, and check the information on your credit report for accuracy, completeness and for any fraudulent activity.
Creditors use your credit report to evaluate your financial reputation by taking a look at how you handle your finances and also to get an idea of your overall character.
For example, let’s say that your name is ‘Penelope Cruz Sanchez’ and over time you have applied for credit using variations of your name, such as:
- Penelope Cruz
- Penelope Cruise
- Pene Cruz
- Pene Sanchez
Your credit report will reflect all name variations and the creditor may find this peculiar and may wonder as to why you are choosing to use so many variations of your name.
In fact, these name variations may not be your fault. These name variations may be the result of the person incorrectly submitting the data to the credit bureau.
The creditor has no way of knowing how these name variations happened, the creditor just knows that these name variations exist and appear on your credit report, and this does not look very good upon your personal character.
Other personal information that may or may not appear on your credit report is your employer, your position, and the time you have been at your current job.
If your employment information on your credit application differs from the information on your credit report this may cause a creditor to become concerned.
NOTE: Your salary is not part of your credit report.
Though your personal income is not a part of your credit report, it is part of your credit application, and your personal income is most likely considered in the overall credit application process.
Of course, in addition to all the above, your existing creditors, credit limits, credit balances and your payment history will also be revealed within your credit report.
If your credit limits are maxed out, or show late payments, charge offs or court filings, then this information will have a negative impact on your credit history and your financial reputation.
Credit reports are intended to reveal accurate, complete and timely information about YOU, but there is always room for error.
Whether these errors are committed by humans or computers, these are errors nonetheless, and only YOU can make sure that your personal credit report remains accurate and complete so as to represent your personal character and financial reputation in the best light.
So stay eagle-eyed on your personal credit report and make sure that you fix any problems before you apply for credit.
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