by Kimberly Lebron
When an individual applies for credit, either personally or to guarantee a loan, the lending institution will evaluate that person’s credit history. This is done by pulling a credit bureau report. A credit report is a snapshot of your credit history and will determine if a lender will extend credit based on your past performance. The credit reports also calculates a credit score using factors such as promptness in paying bills, total available credit, amount owed on loans and number of credit inquiries in the past 6 months. These scores range from 500 to 800. Anything over 700 is considered a good credit risk.
Lending Institutions or creditors will run a report from one or all three of the national reporting agencies ? Equifax, Experian (formerly TRW) and Trans Union. You should always review your credit report for errors at least every 2 to 3 years and prior to any major purchase. You can do this by obtaining your credit report through the national agencies at the following locations:
- Equifax – 800-685-1111 – www.equifax.com
- Experian – 888-397-3742 – www.experian.com
- Trans Union – 800-888-4213 – www.transunion.com
If you know you have had problems in the past obtaining credit begin rectifying it now by requesting a copy of your report, review it for errors and try to resolve any outstanding items. Good credit will be one less thing to worry about when you go to purchase a home or car, plan for your child’s college education or apply for the job you always wanted.
Commercial Banking at the Savings Bank of Danbury can be reached at (203) 731-5446.