Credit reports are collections of information about your past and present credit activity. The three major credit reporting bureaus compile data on a variety of consumer activity including bank loans, credit cards, mortgages and bank accounts.
The institutions who provide you credit will report this information directly to the credit reporting agencies. If a loan or credit card has been closed a reason for the closure will also be included, basically stating if it was closed due to your request, balance was paid in full or if the bank closed it due to poor payment history.
Your credit report will also show how often your credit report has been pulled recently. There are basically three types of credit report requests. The first type is a self pull, where you pull your own report. This should not negatively affect your credit in any way. The second type is when a company you already have a loan or credit card with pulls your report for updates. If something has negatively affected your credit recently then bank may increase or interest rate of close your account (based on the conditions of your credit card or loan). The third type is a “hard pull” which is when a lending institution is pulling your report to determine if you will be approved for a loan or not. Too many recent hard pulls will actually rise a red flag with lenders and they may reject your credit or charge you a higher interest rate.
Tags: Credit Reports