Credit Score: Your Credit Report? What’s In It

Many people do not realize that they have more than one credit report. The credit reporting companies or credit bureaus collect information about you from all sorts of people. They may gather information from businesses that lend you money, from credit card companies, from your bank, or from other businesses that have offered you credit in the past.

When a business or company is considering issuing you credit, they refer to these reports to determine if you are going to be trustworthy enough to pay them back, what interest rates they will charge you, or even if they are willing to extend you an additional line of credit if you already have an account with them.

Advertisement

You might be surprised to find out that not all credit reports are complete. This is because there is no requirement for any creditor to report to the credit bureau about your account. There are three separate credit bureaus, and they may choose to report to one and not the other two, they may choose to report to all three, or they may opt to not report on your credit at all.

So, if you’re struggling to get credit one of the first things you need to know is what’s is on your report and what is not. Before you can do that, let’s look at what you should expect to see when you look at your credit report.

Advertisement

Personal Information

Regardless of which credit bureau you use, they will have compiled some personal information about you. At the very least, it should have your legal name and any other name you may have used in connection with your past credit history.

Advertisement

The report should also include a list of your current and former addresses you’ve had throughout the years included. This helps to determine how long you have lived in any one place (another factor that creditors look to determine your stability). Additional information collected would be your social security number (very important) and any usable phone numbers that creditors have used to get in touch with you.

It may seem like this information is unnecessary in determining your trustworthiness, but it is primarily used to make sure that they are identifying the right person. For example, if you happen to have a very common name, like Suzie Smith, there has to be some distinguishable information that separates you from all the other Suzie Smiths out there. Personal data, like your address, your social security number, and your aliases (nicknames or other names you go by) will help the creditor to know exactly which person the report is talking about.

Advertisement

You may feel like this information is irrelevant to your creditworthiness, but there is a lot of other personal information that is not a part of your report. Your history will not include your salary, whether or not you’ve been on government assistance, your medical background, nationality, race, religious beliefs or your personal lifestyle choices. When it comes to your personal information, by law, it can only include matters of public record. Aside from that information that distinguishes you, like your social security number, addresses, and phone numbers, anything easily accessible in public documents can be included. Therefore, if you have a criminal background that has a bearing on your finances, don’t be surprised to find it recorded in your credit report.

Types of Credit 먹튀검증커뮤니티

One of the key parts of your report will be a list of all the different types of credit you have been issued in the past. These could include:

  • Mortgages
  • Car loans
  • Credit cards
  • Revolving credit lines
  • Equity Loans
  • Business Loans
  • Installment accounts
  • And more

With each type of loan listed, it should also state the credit limit or the amount owed, payment history, how long the account has been opened, and the name of the creditor.

Advertisement

Collection Items

Collection items make up the section of the report that will cast a bad light on your score. These are items that have gone to collection agencies because of non-payment. Regardless of your reasons, a mark in this area could give your score a major wallop. So, not only is it distressing to deal with annoying creditors, it can be a sting to your reputation that could last for many years.

Advertisement

Closed Accounts

Your credit report will include a list of accounts you have paid off as well. These are accounts that you may have had for a few years or just for a few months. These can have a pretty positive impact on your score, showing proof that you have met your financial obligations and paid off your purchases in full.

Advertisement

However, closed accounts are not always a good thing. How they affect your score will depend largely on the reason they have been closed. Many reports do not stipulate if your account was closed by you or by the creditor, but they may include the reason for the closure. For example, it could be due to delinquent payments, or because of the nonuse, both will reflect negatively on your score.

This is important when you are evaluating your report. Any report that reflects a closed account could raise alarm bells in anyone reviewing it. They could think that some negative factors lead to its closing or it could be an indication that the account was denied. The general assumption from a potential creditor will usually be that it was due to some level of negligence on your part. So, if the account was closed because the company went out of business, it may not be reflected in your report unless you do something about it.

Advertisement

Payment History

This is probably the most important element of your credit report. Regardless of how many different types of credit you’ve managed to obtain, how many bills you’ve paid off, or how often you’ve been able to get credit, it all comes down to whether or not you pay your bills on time.

Advertisement

Your credit is a very complex thing and is constantly changing. Still, it all comes down to a single element, do you pay your bills. After all, that is what potential creditors are looking for. Whether you will pay them back or not. This is the single factor that has the greatest impact on your score. If you pay your bills, your score will go up. If you pay them on time, your score will go up even higher.

No matter what your reasons are for making late payments, it all comes down to one single element, your FICO score. All the data collected and included on your credit report is used as a basis to determine your FICO score. So, understanding more about that number will help you to know exactly what you need to do when you begin repairing your credit and boosting that score to as high as it can be.

Share This Story

Get our newsletter