Taking a closer look at your credit score is associated with an increase in creditworthiness, according to the Consumer Federation of America. Credit reports show you everything about your financial history, such as when you missed payments or how many loans you have open. Although negative information can have a major impact on a credit score, it is not the only thing reflected on it.
Identification
Technically, a creditor could only report negative information about an account, because the credit rating agencies require input from lenders who are free to report as much or as little as they want. Most lenders, however, will report positive information, because accuracy is highly desired in the credit industry and as a courtesy to customers.
Other Information a Creditor Reports
Creditors can report almost any information you put on an application. Credit reports show demographic data, such as last known address and employer, and any type of public record or judgment, such as a tax lien, according to the Privacy Rights Clearinghouse. Lenders can report salary information, but the credit rating bureaus choose not report this out of concerns about accuracy.
Effect
Once a creditor reports a negative item to the credit bureaus, it stays on the consumer's report for seven years. The most derogatory items are those that show a person cannot pay a debt at all, such as bankruptcy, foreclosure and a collections account. State law may require certain negative items to stay for a lesser amount of time.
Mistakes
Mistakes can happen, with lenders or with the credit rating agencies, such as when an account is posted to the wrong report. Consumers should scan their reports frequently for errors. If you find one, dispute it with the credit bureaus---who must verify the error with the lender in 30 days or take it off the report. Negative items identified as errors are removed from the record and you receive a free copy of your credit report.
0 comments:
Post a Comment