Many companies rely on a credit bureau report as a way to judge a potential employee's reliability and trustworthiness. Any organization that will be involved in financial business with you will usually check your credit. That is why it is so important for you to know exactly what they will see.
Your credit bureau report shows all of your financial history. This does not mean that your grocery purchases from last week will be on this report. The types of items that are recorded involve your business with financial organizations. This means that any loans, credit cards, and other loan-related transactions will be available for viewing. In addition, if you have gotten behind on any bills, these transactions may appear as well, especially if you are months or years behind. Anything negative about your financial spending will be clearly outlined on your credit report, including the amount owed, the amount you have paid, and the date of your last payment.
All of this information is gathered by a credit bureau. There are thousands of credit bureaus that exist in the United States. But most companies rely on the reports of the three biggest bureaus: Experian, Equifax, and Trans Union. Usually, a financial institute will examine only one of these reports. Though these companies provide reliable reports, mistakes do happen. When a company sees your credit bureau report, they will view that information as being the truth. However, sometimes the information that is reported to the bureaus is either inaccurate or is recorded incorrectly. According to a study on credit repots, about 70 percent of them have errors of some kind. You simply cannot risk the chance that a potential employer will view an inaccurate credit report and decide not to hire you. It could also affect the outcome of your credit card or loan application.
The majority of Americans are unfamiliar with their credit report and have never taken the time to look at it. You do not want to be rejected for that new job or loan just because you did not think to double-check your credit report. Who knows what discrepancies or errors a lender could see? Even if you have not made any financial mistakes, you are still susceptible to report mistakes. Obtaining your credit bureau report is not that difficult. Many companies can obtain your credit report for you for around ten dollars. Another way of obtaining your credit report can result from a denial by a potential employer or lender. If you have been denied a credit card, loan, or job based on your credit report, you will have the opportunity to obtain a free copy from whichever credit bureau provided the original report. Even though this free copy is provided after a rejection, it does give you the opportunity to review your credit report and learn how to repair your bad credit before you apply anywhere else.
One credit report may not contain all of your credit information. To be on the safe side, get a copy from each of the three major credit bureaus. You can usually get a discount for buying all three at the same time.
By Tamara C. Jude