Chapter 5
Fixing Up Your Credit Report
In This Chapter
Grasping the importance of your credit report
Identifying what a credit report is
Uncovering the details in your credit report
Knowing how negative information gets in your credit report
Translating your FICO and Vantage credit scores
Examining two specialized credit-reporting agencies
M
any people used to put their credit reports in the same category as IQ
results, SAT scores, school report cards, job reviews, and cholesterol
readings -- in other words, information that's important only when a particu-
lar situation arises. As soon as the situation goes away, so does the need to
monitor it. Sort of like a diet. Once your belt stops cutting off your circula-
tion, you can stop counting your calories. Right? Wrong! The same applies to
watching your credit report and keeping track of your score periodically.
Today, with tightening credit, a larger-than-usual need to refinance a home
by a larger-than-usual percentage of the population, and credit card debt at
very high levels, your credit report and score have moved to center stage.
And that doesn't begin to touch on the other problems that a low score
or negative credit file can exacerbate. Insurance rates are rising and home-
owner's insurance is getting not only expensive but, in some places near the
water, also hard to find. The information in your credit report and score can
make an important difference here as well. In this chapter, we explain why
you need to be on frequent and intimate terms with your credit report.
Understanding Why a Credit
Report Is Important
Your credit report doesn't come into play just when you want to borrow
money. A bad credit report may affect what you pay for insurance, whether
