Making Sense of Your Credit Report

Are you seeking to make any major purchases in the near future?

A Car?

A house?


Applying for a loan?

Any of these will ultimately call upon one major factor: your credit.

It is one of the end-all-be-alls when it comes to financing. As such, it’s imperative that you understand everything your credit report is communicating.

It’s always good to monitor your credit report, even when not eyeing a big spend.

First, it’s good to check your personal info to make sure that everything is accurate. This includes your social, birthdate, and few more important identifiers.

Keep a Close
Eye on Your Accounts

Another key piece of info on your credit report are your accounts.

This is a key roadmap of your credit history. From lines of credit, to loans, debts, and much more. And this is only the baseline of information covered.

If you’re applied for credit, a loan, or are embarking on a big spend, your credit will most assuredly be checked.

Known as an inquiry, these reviews impact your score based on its level of severity. There are soft and hard inquiries, and each will cause you to lose points on your score. Be careful here: the more frequent your reports receive an inquiry, the lower your score will start to plunge.

The Biggest Factor when it Come to Your Credit

Of all the inclusions on your credit report, by far the most integral is your payment history. This will make or break your score, along with your chances of securing better interest rates. The next most important are your collection of debts. The more inconsistent your debt management, the more it harms your score.

The next most important factor involves time.

The actual amount of time that’s passed since you’ve established your credit matters. The longer your history, and the better you’ve managed it, the more it will reflect well on your report. Lastly, there’s any new lines of credit added to your report, and the various variations of credit you’ve amassed. While not as important as their counterparts, they can still impact your report for better or worse.

Banking with Newton Federal

Have any banking questions or needs? Newton Federal is here to help. Reach out to us via our contact page, as our lenders are on standby to give you the help you need. We look forward to hearing from you.