Understanding What Is On Your Credit Report

If you were to ask most consumers what they thought was on their credit report, you'd likely get a blank stare. Indeed, most people don't realize the type or level of information found on their report. This is because the majority of people don't look at it regularly. But, because your credit history and the information found on your report is so widely-used by creditors, it's critical that you realize what others are seeing. Below, we'll describe the types of information found on your report as well as what is not included.

Personal Information - Your credit report can include several pieces of personal information. For example, it will always contain your first name, last name, birthdate and social security number. But, your report can also include your marital status, employment record as well as your current and previous addresses. Most of this information is provided to credit agencies by lenders, though none of it is used to calculate your credit score.

Credit Inquiries - Anytime someone makes an inquiry on your credit report, the inquiry is listed. Apartment managers, lenders, employers and others often do credit inquiries on prospective renters, borrowers and job applicants. Any inquiries made during the past 2 years are listed on your credit report. They're typically labeled in a separate section, making it easy to identify unauthorized inquiries.

Credit Lines - Each credit line that you've opened is listed on your report. This includes accounts with banks, credit cards, retail stores, car dealerships and others. For each account, specific information is provided such as the date the account was opened, the credit limit and whether your account is current (payments are made on time).

Collection Items - If you fail to keep an account current, your creditor may move your account into a collection status (either in-house or through a 3rd party collection agency). Collection accounts listed on your credit report can include the balance owed, balance age (how long the account has been in collection status) and its current status (whether you've paid the balance or not).

Court And Public Records - Any item that is listed and detailed in court or public documents may be included in your credit report. For example, your report can contain foreclosures, divorce details, judgments and liens, bankruptcies and wage garnishments.

Items That Are Not Included

While your credit report seems to contain most of your personal and financial life, there's a significant amount of information that is not included. Your salary, medical history and ethnicity are not listed. Nor are your personal assets including savings and checking accounts and investments. Any criminal convictions are also ignored.

Getting A Grasp On Your Credit Report

It's common for people to confuse their credit report with their credit score. While a credit score is used to quickly determine the viability of someone as a credit risk, the report provides the details behind the score. Often, a credit score may by misleading. It hides credit fraud, errors and other factors that can have a damaging impact. If you haven't checked your credit report within the past twelve months, take the time to do so. Study the various pieces of information listed. Look for mistakes or errors that could potentially hurt your chances of qualifying for a loan. You now have a better understanding than most people regarding what your report entails. Use it to your advantage.