What's on Your Credit Report, Anyway?
Contributed by Rachel Johnson
What's on Your Credit Report, Anyway?
So many people have no idea what is on their credit report. When they apply for a loan or for some type of credit they may be shocked when they are turned down based on their credit rating. Your credit report is the biggest determining factor when you try to make any major purchases. It's important to have a good job, decent pay, and a realistic income to debt ratio, but even when all of these things are in line, your credit report is what it all comes down to.
So, what is on your credit report?
Everything! Your entire payment history! Every bill, every credit card, every loan payment, or non-payment. Of course payments are good, but what your credit report will show is how often you pay your bills on time, late, or not at all. Typically, if you have made an attempt to pay your debts, a lender will be a bit more forgiving of your credit report blemishes.
What do they do with the information on the credit report?
All of your payment history creates a credit score. You are basically born with a credit score of five hundred, and non-payment or late payment will take away from that score. Timely payments and a good credit history will add to that score. Over time you can either end up with a really good credit score, or a really bad score.
How long do blemishes stay on my credit report?
Luckily, your credit report usually only shows the last five to seven years of credit history. This is good for people who didn't pay debts when they were younger and didn't know better. Obviously, their credit score will reflect the non-payment or delinquent payment history, but the credit report won't be full of old collections and credit blemishes.
