What kind of information appears on my credit report?
Have you ever heard it said that almost no one remembers the good things people do, only the bad ones? Well, the same is true of the information that appears on your credit report.
It turns out that the payments you make on time are not reported to the credit bureaus, but rather the opposite. What they do report to the credit bureaus is your late payments, delinquencies and defaults, which can seriously affect your credit score.
Below is more detailed information about what shows up and what the credit bureaus are informed about.
Your personal information, which you have given them when applying for and receiving credit, including your first name, last name, date of birth, insurance number and address.
Information about debts and amounts you still owe on open loans and all outstanding credit card balances.
History of each payment you have made on open loans and credit card accounts. This payment history details whether you have made your payments on time or whether they were 30, 60 or 90 days late.
For closed accounts, your credit reports list the payment history and other details of loans you have paid off and credit accounts you have closed in the last 10 years. If a closed account has negative information associated with it, such as late payments, it will remain on your credit report for seven years.
Your recent credit inquiries, if a lender ran a credit check in connection with a loan or credit card application you made in the last two years, a record will appear. This is known as a hard inquiry.
Details about any unpaid bills turned over to collection agencies in the last seven years are also listed on credit reports.
On the other hand, these are some of the information that will not appear on the credit report: income or net worth, marital status, employment status, education level and bank balances.
If you are someone who is looking to have a good credit history, you should avoid falling behind on payments, as the consequences of unpaid bills are fatal to your credit score. A bad credit history means closed doors, as no company or bank will want to lend you their services, since through your credit history, they will realize that you are not a safe candidate.
Banks do not share information about your accounts with the credit bureaus; mishandling a bank account can cause negative entries to appear on your credit reports. If you leave an account that is overdrawn or has unpaid fees, the bank may turn over the amount you owe to a collection agency, and these agencies generally report your accounts to the credit bureaus.
A collection account on your credit reports has the power to affect your credit scores for seven years from the original late payment.
It is recommended that you check your credit report regularly, as it allows you to detect any information that appears on your credit records, whether it is incorrect or not.