Credit Report

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What is a credit report?

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A credit report is a detailed record of an individual's credit history, including personal information, credit accounts, payment history, and any bankruptcies or foreclosures.

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Why is a credit report important?

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A credit report is important because it helps lenders assess an individual's creditworthiness when applying for loans or credit cards.

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What factors affect a credit score?

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Factors affecting a credit score include payment history, credit utilization, length of credit history, types of credit used, and recent credit inquiries.

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What is credit utilization?

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Credit utilization is the ratio of current credit card balances to credit limits, expressed as a percentage. It indicates how much of your available credit you are using.

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What is a good credit score range?

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A good credit score typically ranges from 700 to 749, while scores above 750 are considered excellent.

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What is the impact of late payments on a credit report?

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Late payments can negatively impact a credit report and lower a credit score, especially if they are more than 30 days late.

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How often can you check your credit report for free?

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You can check your credit report for free once a year from each of the three major credit bureaus: Equifax, Experian, and TransUnion.

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What is a credit inquiry?

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A credit inquiry occurs when a lender checks your credit report to evaluate your creditworthiness, which can be a hard or soft inquiry.

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What is the difference between hard and soft inquiries?

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Hard inquiries occur when you apply for credit and can affect your credit score, while soft inquiries do not affect your score and occur when you check your own credit or when a lender pre-approves you.

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What is a credit limit?

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A credit limit is the maximum amount of credit that a lender extends to a borrower on a credit card or line of credit.