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What Information is used to compile my Credit Report?
In general, as you look over your credit report, you will notice that financial and identifying information about you is provided. When customers first hear about credit reports, many see them as invasions of privacy, but in fact the credit bureau takes care to only provide your credit information to qualified people and to only gather necessary information. No individual person can access your credit report without just cause and no one can access your credit report without your consent. A lender, for example, can only look at your credit report because you have given consent by asking for a loan.
Credit report information is also gathered in a very controlled way. No one can simply call a credit bureau and file a complaint. Instead, bureaus work with legitimate companies that send them reports once a week that list unpaid bills or late payments. The bureaus use this information to create your report. Since mistakes do happen, you do have the right to review your report. The credit bureau will
correct any mistakes you find so that your report is an accurate reflection of your credit history.
In your credit report, you will find information such as the name of your spouse, the names of current and past employers, the addresses you have lived at, and your name. You will also find financial information such as your payment history, any bankruptcies you have declared, and loans you have taken out. Financial mistakes - such as defaulted loans, late bill payments, and unpaid debts - all also have their place on your report. How much money you owe and how many loans you are seeking now are also included on your report. Details about each of your loans and debts - including how long you have remained with a lender - too remain on your report.
What Information is Not Used to Compile My Report?There are many types of information that is not included in your credit report information:
- Your sex. Whether you are a man or a woman does not matter as it does not affect how you repay your bills. This information is kept confidential and is not included in your report.
- Your age. Your age does not impact your credit and is not included in your report. Whether you have only had accounts for a few months or have been working for many years and are near retirement, you can enjoy either good or bad credit, depending on your financial history and not your age.
- Your income. Contrary to many myths about credit, your income is not used to calculate your credit score. Making more money will not help you enjoy a better credit rating. In fact, if you are very affluent but are late paying bills or are deeply in debt to pay for luxury items, you will have a much worse credit rating than someone who earns far less but lives below their means.
- Private debts. If you borrow money from a friend or family member, there is no official paper record and so the debt and your payment of that debt are not included in the report.
Now that you know how to read and understand your credit report information, take a look at your report and credit rating anew. You will find that you can understand your credit history much better and can take the steps needed to make your financial history even more promising.
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