Is There a Money Limit Credit Agencies Can Report to the Credit Bureau?

Credit bureaus such as TransUnion, Equifax and Experian report information provided to them by banks, credit unions, credit card companies and others. There are no limits on what the agencies can report, including the amounts that you owe certain creditors or the amount of available credit on your accounts. Creditors are responsible for the accuracy of the information.

Reporting

Creditors report to credit bureaus each month as they update account balances, credit lines, available credit and more. Other information is also noted, including late payments. Creditors will also inform the credit bureau if the account has been closed, charged off because of nonpayment or sent to a collections agency.

Credit Score

Information on the credit report is used to calculate your credit score. A credit score is a three-digit number ranging from 350 to 850 and is extremely important. A high credit score of 720 or greater usually results in the lowest interest rates available on loans and credit cards. Maintaining a high credit score can result in thousands of dollars in savings on finance charges over a lifetime. People with scores below 620 are considered high credit risks and pay considerably more in finance charges.

Debt Levels

Excessive debt may harm your credit score even if you pay your bills on time. People with credit scores in the 700s generally have low levels of revolving debt. Typically they pay off credit card debt each month to avoid finance charges and keep balances low.

Credit Repair

Improving poor credit scores requires patience. It is possible for almost anyone to build a 720 credit score, but that requires a rigid commitment to timely payments and keeping balances low over 12 to 36 months. All negative information on credit reports must be resolved as well, including judgments, chargeoffs and collection accounts. Most negative credit information is reported for seven years but automatically drops off after that. The key to credit rebuilding is to keep paying on time. Negative information eventually expires.