Credit Information

What Is A Credit Report?

When you apply for credit or a home mortgage, your credit is pulled from the credit bureaus. There are many smaller credit bureaus, but all of them are affiliated in one way or another with the big three: Transunion, Experian and Equifax. These bureaus collect and repair credit information about the majority of Americans. They are not government agencies, and are not affiliated with the government in any way. They are private companies. They are for profit organizations that sell your credit information for money.

They receive information about you through the same creditors that give you credit. The bureaus have agreements with every creditor that require the lender or credit grantor to inform them about your relationship with them (the credit grantor). If you make a late payment for example, that information is quickly reported to at least one of the three bureaus. This information is then recorded on your credit history.

Credit reports are more than just a record of how you are currently managing your accounts. They are histories of everything that you are doing with credit right now, as well as histories of everything you have done with credit in the past. The credit bureaus collect this information and records it on your credit report, and then proceed to sell this information to credit grantors or lenders that you apply with. The credit grantors or lenders use this information to decide if they should lend you money.

When they review your credit, they are especially interested in any negative credit information. If your record shows that you have tendency to regularly pay late, or that you disregarded your financal commitments in the past, then most likely your application for credit will be denied. Just like when you were in grade school, your credit report is your financial report card to credit grantors.

What Kind Of Information Appears On A Credit Report?

There are items called "trade lines". A trade line is something like a department store card, credit card, auto loan, student loan or a mortgage. If your history shows late payments, or there is a charge off, bankruptcy, or an item is repossessed, it will be regarded negatively by credit grantors.

Collection Accounts - When a creditor refers an account to a collection agency because of non payment or late pays, it appears on your report as a collection account. They will show as paid or unpaid. Any kind of collection will be considered negative by a credit grantor, whether it was paid or not.

Public Records - Public records are items that are filed at the court house and is available as public information. This include items like liens, judgments, foreclosures, bankruptcies, satisfied judgments and satisfied liens. All court records are considered negative by all credit grantors.

Inquiries - Every time you apply for credit, the credit grantor will "pull" your credit for review. A few pulls will not harm you. If there were many inquiries over a period of time however, it can drag your score down by as much as 30 points.

How Long Will Negative Information Stay on My Credit Report

The Fair Credit Reporting Act (FCRA) requires that negative credit items be deleted from your credit bureau file if it is older than seven years. The exception is a Chapter 7 bankruptcy which can be reported for up to ten years. These are the time limits for reporting negative credit. The creditor or the credit bureau however can choose to have the negative credit information deleted whenever they please. Inquiries may remain on the credit report for up to two years.

Can I View My Credit Report?

Credit grantors like mortgage lenders are not allowed by the credit bureaus to show you your own credit report. You can request a free credit report once a year from each of the three bureaus. They will mail it to you and it can take several weeks to arrive. What is your credit score? Find out NOW!

How Much Bad Credit Does it Take for Me to be Denied Credit?

As you may have already noticed, even one small late pay may result in credit denials. It is not true that a large amount of positive credit can outweigh some negative credit. Any negative credit whatsoever can become a substantial credit problem.

Who Looks at My Credit Report?

Your credit report is used more and more often as a way to measure your character. Creditors will always review at least one of your credit reports before allowing you credit. It is increasingly common for insurance companies to review your credit before giving you health or auto insurance. Many employers now check credit before they consider you for a position. If you rent, you may have already been through a credit check to determine your worthiness as a tenant.

Can I View My Credit Now

Yes you can. We have partnered with a company that will let you view your credit report for free if you sign up for a free trial. They can be found here.