Understanding What Information is Included in Your Credit Report
As a financial consumer, it is always important to know what goes into your credit report and how it affects your credit score. Credit reports contain a wealth of information about your credit and payment history, as well as personal information that can impact your creditworthiness.
Personal Information
Your credit report will always contain your personal information, including your name, social security number, date of birth, and current and past addresses. Lenders use this information to verify your identity and ensure that they are reviewing the correct credit history. It is therefore important to ensure the accuracy of your personal information as any errors can negatively impact your credit score.
Account Information
Account information in your credit report includes any loans or credit accounts you have had in the past or currently have open. This may include credit cards, car loans, student loans, and mortgages. For each account, the report will also show the current balance, payment history, credit limit, and the date it was opened.
If you have any late payments or delinquencies, these will also be reflected in your report, which can negatively impact your credit score.
Credit Inquiries
Credit inquiries happen whenever someone checks your credit report and include both hard and soft inquiries. Hard inquiries are those made by lenders or credit card companies when you apply for new credit, while soft inquiries are those made by yourself or companies looking to pre-approve you for a credit offer.
Too many hard inquiries can negatively impact your credit score, so it is important to be cautious about the types of credit you apply for and to limit the number of inquiries.
Public Records and Collections
Public records such as bankruptcies, foreclosures, and tax liens will also appear on your credit report. These public records can remain on your report for up to ten years, and delinquent accounts sent to collections can remain on your report for up to seven years.
Final Thoughts
Understanding what information is included in your credit report can help you make informed financial decisions and keep a healthy credit score. It is important to review your report regularly for accuracy and to address any issues or errors that may be negatively impacting your credit score. By knowing what goes into your credit report, you can work towards building and maintaining a strong credit history.
