Why a Credit Report is So Much More Than Just a Credit Score

Why a Credit Report is So Much More Than Just a Credit Score

Many people think that their credit report only tells them their credit scores along with a lot of other information that they do not need. However, this is a very common misconception. Credit reports contain a lot of information, and some of it might be difficult for many people to understand or read, but all of it is important information for the person who obtained the credit report.

One of the biggest mistakes that people commonly make is looking at their credit report only for the credit scores. Everyone should take time to read and understand everything that is on their credit report. This information can help them pay off debt, improve their credit score, and make better decisions in the future. In fact, many people will not be able to achieve their financial dreams without knowing how to read their credit report. Here are a few of the reasons why a credit report is so much more than just a credit score.

Credit scores can vary

A credit report can contain credit scores from one or a few different agencies. Each agencies use different factors to create their credit scores, so some scores may be different than others on a credit report. Those who only look at the credit scores will not understand this unless they look at the full credit report.

Credit reports show specific past delinquencies

Credit reports from CreditSesame.com can show specifically where and why a credit score drops. This can be extremely valuable information for a person looking to improve their credit scores. By seeing their delinquencies on their credit report, anyone can figure out what they need to do to fix or resolve the past issue and improve their credit scores for the future.

Some parts of a credit report can be disputed

It is common for people to think that there is no way for them to improve their credit scores other than eliminating debt. Although it is true that debt elimination can improve credit scores, there are other ways to improve a credit score. Anyone can dispute certain items of their credit report that are incorrect or otherwise wrongly reported to improve their credit history.

Lenders look at more than just the credit scores

In order for a person to get a new line of credit, they should be aware of what their credit report says. Lenders will not only look at the credit scores, but they will also examine the rest of the credit report to look for other reasons why they should not lend money to an applicant. Those who want to get new credit should be aware of everything that is on their credit report so they can explain it to a new lender if necessary.

Credit reports might show potential identity theft before it shows up anywhere else

Identity theft is an issue that people want to catch as early as possible. A credit report might be able to show someone that their identity has been compromised before they can notice it anywhere else.

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