From the time you fill out your first credit card application, or apply for your first credit card, your credit file is already in the works. The information being reported to your credit file is being supplied by your creditors, not from you. Your creditors supply the credit bureau companies with your personal and financial account information to create a credit bureau history that is accessed by your social security number and date of birth. The credit bureaus in turn sell this information to credit card companies, banks and insurance companies in the form of a credit report.
When applying for credit, your potential lenders will access your “financial report card” and score you according to your grade point average. Your score, for example, will either “pass” you to getting your first credit card or “flunk” you by denying you any credit at all. When starting to rebuild credit it is important to know where you are currently at, that is why it is a good idea to know what is on your credit report.
Your credit file includes the following information
- I.D. SECTION : Personal information such as your name, address, phone number, date of birth, social security number and your place of employment are listed in this section.
- CREDIT HISTORY SECTION: Your creditor(s) name and your payment history are reported here in this section whether it is positive or negative. The creditor’s name, the account number, type of account (joint, individual etc.), when the account was opened, total months your account has been reported, date of your last payment or charge, your highest balance, the term of the loan balance due on the account, status of the account (rated from 1 to 9…1 being best and 9 the worst) and the date of the last account update from your creditor.
- COLLECTION AGENCY ACCOUNTS : Recorded here are all of your accounts which your creditor(s) have turned over to a third party collection agency for collection.
- COURTHOUSE RECORDS : Any public record information such as bankruptcy filings, tax liens, judgments, repossessions, and records of marriage and divorce are shown here.
- ADDITIONAL INFORMATION : If your former addresses and past employment are reported by your creditor(s), they will be shown here.
- INQUIRY SECTION : Inquiries are listed when a creditor requests a copy of your credit file. These inquiries are generated when you apply for a credit card, bank loan or mortgage. Inquiries are also made when a creditor checks your credit file periodically for possible credit line increases, provided your accounts are up to date, or credit suspension if derogatory marks are viewed. Companies that provided you with promotional offers are also listed here but only you can view these, your creditors will not see these entries. These inquiries remain on your credit report for up to two years. Too many inquiries will reduce your overall credit score so be a smart shopper and stop shopping for a while.
If you are serious and want to rebuild credit then this information enclosed in your credit report is important to know.