28 Jan What Is Included In a Credit Report?
Did you just receive your credit report and everything seems Greek to you? You’re not alone! Every time you read your credit report, especially for the first time, can be really overwhelming and confusing. In order to understand what you’re reading, first you should know what is included in it.
What is included in my credit report?
1. Your name and some alternatives
Obviously, your credit report should contain your name. On the other hand, there are possibilities that your name will appear misspelled. This happens because the report is assembled with information from both your creditors and lenders. Make sure that your name appears the same on every paperwork you make.
2. Open and closed accounts
It will show both your open and closed accounts as well. Keep in mind though, that some of your old accounts will not make it to the report. These are the accounts that have been closed for more than seven years with negative terms, and their credit reporting limit has passed.
3. Credit cards
Your credit report will include, as you probably expect, your full credit history from all your open credit cards. It is false to believe that credit cards with negative payment information that have been terminated are an exception. They will keep appearing to your credit report for the next six years from the date of account closure.
All of your regulated loans have their space in a credit report. Car loans, student loans, payday loans, etc. Some lenders check the credit report and pay attention to the type of loans you have.
It is important to understand your credit report!
5. Your full payment history
The whole point behind credit reports is to somehow prove whether you’re responsible enough to pay your debts or not. Therefore, it is obvious to see your payment history on the credit report. Negative payment history that is older than seven years will be excluded. Usually only the last two years are included in the report. The rest can be seen in the comments section.
6. Your employer
If you share the name of your employer with any individual or business that reports to the credit bureau, then you may see it on the report. Don’t worry, this will not affect your credit score, but it can actually help. Credit card issuers and/or lenders may use it as a verifying tool for your loan or card application.
Any active, or paid off within the last six years, mortgage will be in the list of your report as well. You may think that this is a wound for your credit score, but as long as you show a good payment behavior, you are safe.
Do you feel that sometimes is so hard to understand all these details of a credit report, cards, credit scores etc. That’s why we’re here! We lead the way towards your financial freedom. Baby Boomers Financial is here to help you. Don’t hesitate to contact us for a free credit review.