What Kind of Information Is On Your Credit Report?

By Janet Folkerts

A question that comes up often when we are doing educational presentations on debt and credit is, “How does information get entered on my credit report?” Most people when they pull their annual reports can’t read them, so not understanding how they are created is not uncommon a question.

Your personal data is typically submitted to a credit reporting agency by “Data Furnishers” such as your creditors, by the court system or from other public records, and by debt collection agencies. By law, it is supposed to be 100% accurate, 100% verifiable, and 100% timely (meaning all the late dates, opening accounts dates, and dates of last activity must be correct).

The kind of information determines how long it stays in your history. If the comments are accurate, they can stay on your report for seven years. Bankruptcies can remain on your report for 10. If not accurate, it can affect your buying power, getting a job, keeping a job, the cost of your medical care and insurance.

Personal information is shown on your credit report, but these items are not used to evaluate your credit history/score. They are gathered from information you give to your creditors. Full name and variations of it (such as maiden names), your Social Security number, birth date and current and previous addresses. Also current and past places of employment and on some your driver’s license number and state where issued.

What really hurts your credit scores is the data collected from the court system public records and from debt collection agencies. Such as: liens and judgments, bankruptcies, foreclosures, wage attachments (garnishees) and, of course, accounts in collection.

Your credit history is a reflection of your character, your capability to pay, and your current assets. Such as dates accounts were opened, the types of accounts (revolving, installment loan, mortgage), the account balances and credit limits and the payment history for each account, including late payments. It also shows unpaid child support and overdrawn checking accounts can also be listed.

Inquiries are made when you are seeking new credit; too many inquiries in a short time are viewed negatively. Some hurt you more than others. Inquiries made for promotional mailings, by your current creditors, and by yourself for informational purposes; these inquiries are not viewed negatively.

Your credit score is a number that’s generated by analyzing your entire credit profile. Scores range from 340 to 850. Lenders want a minimum of 620 today. The higher your score, the less you pay because the lender assumes you will be less a risk. Equifax, Experian and Trans Union are the three major credit reporting agencies in the United States. Each agency operates independently of the other two, so records often differ. Corrections and updates to your file must be sent to each credit reporting agency, because they do not share information.

Spectrum Resources has served families since 2002 providing financial risk reduction services. Teaching people about consumer laws and how to utilize them in dealing with incorrect, unverifiable and untimely information in their credit history. Call 967-0660, e-mail SpectrumResources@tampabay.rr.com or visit our new website at www.SpectrumResources.org.  We offer programs such as “Continuing Education” with personalized lessons dealing with your specific challenges, and Basic Dispute Program for credit repair. Our fees are due when we have completed the task at hand and not before.