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Essential Information on Credit Reports
What Information Is Reported?
What Does Your History Reflect?
What Does Your History Reflect?
These are the items included on the credit report:
Revolving Accounts
- Credit Cards
- Airline cards
- Bank cards
- Department store cards
- Gas cards
Installment Accounts
- Mortgage loans
- Auto loans
- Student loans
- Rent (sometimes)
- Utilities (self reported)
- Bankruptcies
- Collections or judgements
What Does Your History Reflect?
What Does Your History Reflect?
What Does Your History Reflect?
A credit history meticulously documents the financial status of each reported credit line. Subsequently, your credit score is determined by utilizing the information presented in the chart above. The "Types of Credit" category reflects the diversity of your accounts, including installments, mortgages, revolving credit, and more. The emergence of new credit may stem from factors such as job screening, insurance-related inquiries, interactions with utility providers, and other credit-related inquiries.
Weight Factors
Payment History 35%
Current Combined Debt 30%
Length of Credit (Existing Accounts) 15%
Types of Credit 10%
New Credit 10%
Improve Your Credit!
Should you encounter credit challenges, it's essential to recognize that these difficulties won't have a lasting impact as long as you actively work on enhancing your credit score. Lenders are aware that unforeseen life events, such as accidents, divorce, job loss, or illness, can happen. The key is to demonstrate to your lender that you managed credit responsibly before the life-event and successfully rebuilt your credit standing afterward. Over time, as new information is incorporated into your credit report, the outdated information becomes less significant. By making adjustments to your credit habits, you'll witness a gradual improvement in your credit score.
The older your credit line is, the lesser it impacts your score.
Addressing Issues in Credit Reports
Correcting inaccuracies in your credit report, such as erroneously recorded late payments or listings of active accounts that have been closed, is entirely possible. Recognizing these discrepancies is crucial for initiating the resolution process. To take corrective action, the first step is to contact the credit bureaus.
Equifax - Call 1-800-685-1111 or visit www.equifax.com
Experian - Call 1-888-397-3742 or visit www.experian.com
TransUnion - Call 1-800-916-8800 or visit www.transunion.com