What Is Credit Information?

Your credit information has a powerful effect on your ability to get good credit terms with lenders and insurance companies, and possibly to even get a job. Credit scores are affected by the information contained in the reports about your spending habits. Even if false information is entered by mistake, it affects you. Consider some of the type of credit information that might be found on a credit report.

Significance

Whenever you apply for credit of any kind, whether it's for a credit card, a loan, insurance, a mortgage, etc., your credit record is checked. A lender may check with any credit reporting agency of its choice, and there are many, but there are only three major ones (Equifax, Experian and TransUnion). The information found on that report will help determine what kind of credit terms you will receive--if any.

Types

The credit information that appears on your credit report focuses on information that pertains to your performance in handling finances. Some information may indicate whether or not there might be a problem if they lend to you. Your name is there, along with other possible alternate spellings, your social security number and your current and recent addresses. Your present and recent employers will be there as well.

The primary information that will appear on a credit report deals with how you pay your bills. This includes the amount of credit you have and with what company, and the amount of debt that is on each account. Dates as to when the accounts were opened are also there, as well as when they will be closed. The Federal Trade Commission also notes that legal problems about financial matters will also be there, such as if you have ever been sued, have overdue child support or if you have filed for bankruptcy.

No information will appear about your gender, your ethnicity, your politics, religion or your medical history. A criminal record will not be on your credit report.

Time Frame

Negative items that are on your credit report have a specified amount of time that they will appear there. Equifax states that a bankruptcy that happened more than 10 years ago will not appear there, and debts that were placed in collection or were charged off will not be there after seven years.

Considerations

Whenever you make an application for credit, the company checking your credit history will make an entry for a "credit inquiry" on your report. Each credit inquiry you make is listed in the credit report. MyFICO adds that the time since credit inquiries is also noted in your credit report.

Misconceptions

A credit score cannot be changed by any credit repair agency or by anyone else, Experian states. The agency indicates that only time can heal your credit score, and the single biggest factor you can use to accomplish this is to maintain an excellent record of paying on time.

Warning

It is important to occasionally check your credit report for errors that may have been entered by mistake. Problems with identity theft will also appear, and they can destroy your excellent credit history quickly. Each credit reporting agency has a procedure to go through on their website to get it corrected.