We aim to experience and attain several milestones in our lifetime. From getting the perfect job to owning a house to taking a trip to every beautiful foreign location, the dreams never stop. But, there are several factors that can hold one from achieving these big goals. A major element is the credit report. These reports majorly drive our financial standing. Despite their importance, credit reports continue to be disregarded by a majority of citizens.

Credit reports are a type of statement that contains data on the undertaken credit activity and the ongoing credit standing. It includes information on the history of loan payment and the credit account’s status. Credit reports are created by specialized credit reporting agencies. The information is resourced through different sources before being curated into credit reports.

Inclusions of a credit report
The inclusions of a credit report involve more than just basic credit information. Every different agency will include different kinds of information about the credit holder and some of the essentials are:

• Most recent credit inquiries – The recent information on the different companies or organizations that have sourced the credit report. Also, the dates on when they were pulled out.
• Personal information – Personal information such as credit holder’s name, birthdate, postal addresses, phone numbers, Social Security number, and employment status.
• Information on accounts – Accounts information includes information on credit accounts, credit card history, mortgages, auto loans, names of the creditors, balance information, history of repayment, and more.

Some agencies also hold public records as part of the report. Court judgments, tax liens, and bankruptcies are also listed, but most agencies are now omitting this information as part of credit reports.

It is not unusual for people to get confused between credit reports and credit scores, which are not the same. In simple terms, a three-digit credit score is a number that denotes or represents the data which makes up the credit report.

Importance of the best credit reports
A credit report may be viewed as just another record, but it holds a lot of importance. The credit score is essentially the result of the data on the report. Understanding the credit report can help evaluate how the credit score can be increased. It makes you aware of which strategies can be employed to enhance the number. Keeping a tab through the credit report can also aid in spotting identity thefts if any. It is also found that credit reports can contain errors that can affect the score and this may be due to a mistake from the credit reporting agency’s end. So, finance experts encourage credit holders to check their credit reports from the major credit reports agencies regularly. The agency can be visited to file a dispute and have the reports rectified.

Effects of a bad credit report
A bad credit report can affect your opportunities in more ways than one. Some of the most notable ways include:

• Limited job opportunities – Employers can review credit reports when undertaking background checks of employees. While it can be only accessed after written permission from the individual, it may be used as a major decision maker for a financial and security-sensitive job role. Credit reports may also be used as a document to confirm one’s identity.
• Rejection of loan and credit application – In the case of poor credit history, there is a higher possibility of the loan application being turned down. Or it can lead to an increase in the rate of interest, leading to the payment of higher amounts in the long term. Lenders are bound to check the credit report before granting credit and deciding the qualifications for interest rates and more.
• The rate for insurance policies – Yes, insurance companies too check the credit reports and credit scores. This helps them determine whether one will be able to regularly pay the premiums. The premium amount is also driven based on credit history.

Apart from the above-listed factors, a bad credit report can also directly affect the ability to rent a home, mortgage rates, and opening a utility account.

Five best credit reports
Family applications are directly or indirectly driven based on the information contained in the credit report. To ensure accuracy, it is best to check the credit report at least once a year. The more regular the checks, the better will it be. Good news is that the best credit reports can be accessed for free. Easily accessible online, they do not require one to fill in credit card information at the time of signing up.

• AnnaulCreditReport.com – This site works as a central location that lets consumers access their credit reports from all the three major credit bureaus that include TransUnion, Experian, and Equifax. Granted by the Federal law, the credit report can be obtained for free every once in 12 months. The credit reports can be conveniently downloaded in a PDF format. While it proves to be one of the best credit reports, it does not include the credit score.
• Credit Sesame – Partnered with TransUnion, Credit Sesame sources information from the bureau to compile the latest credit information and the different factors that can affect the credit. One must create an online account with Credit Sesame and there is no need to sign up. The membership generates a monthly update on the credit information. Additionally, one can view their credit score from TransUnion and this can be used to evaluate the credit standing and how it can be improved.
• Credit Karma – Credit Karma is yet another credit report provider that is partnered with TransUnion and Equifax. Consumers can access credit reports from two of the major bureaus. This company stands out with its plethora of credit tool offerings in the form of credit score simulators, calculators, credit comparison, report card, and advice columns. It is also found to be more user-friendly and does not include too many ad pop-ups. Credit card and loan offers too are shown based on the qualification.
• CreditWise – An effective tool from Capital One, CreditWise offers credit reports and credit scores sourced from TransUnion. Irrespective of whether a customer of Capital One or not, CreditWise can be conveniently used to view information on credit. Consumers are kept well-updated about any significant changes in the credit report through or important credit events through regular push notifications and e-mails. Another interesting feature is its credit score simulator that aids in effectively determining the best actions to positively affect the credit score.
• Bankrate – Bankrate enables consumers to have full access to the credit report for free as generated by TransUnion. An admirable factor is that the tool lays out the credit data in chronological order for better viewing of the credit history over time. The different changes and key areas can be understood with the way in which they influence the credit report. It also lets credit holders view a free analysis of the credit score. These factors make it one of the best credit reports.