Savvy borrowers know that the three major agencies track their financial history, such as whether they pay their credit cards on time every month. You may think that the credit bureaus can also see what purchases you make and whether you buy "frivolous" things, but the credit bureaus do not care what you buy. In some cases, however, they do know your purchase history.
Identification
The major bureaus -- Equifax, Experian and TransUnion -- do not itemize your purchases on a credit report. Credit reporting agencies are more concerned with whether you repay your debts. The difference between defaulting on a mortgage and cell phone is immaterial to the credit scoring formulas employed by a credit bureau.
Considerations
The FICO formula used by the major credit bureaus breaks down loans into their sector, such as retail card, student loan and mortgage. Thus, the credit bureaus can track where some of your purchases go to, but not necessarily specifics. A credit report, for example, will not dissect how much you pay in tuition and other expenses after taking out a student loan.
Alternative Credit Bureaus
Alternative credit bureaus may go more in depth into your spending habits, but only if you choose this option. When consumers cannot obtain a traditional, they sometimes go to an alternative agency, which requires consumers to self-report debt and then the agency verifies the payment. In this situation, the agency will know about any creditable accounts, such as cell phones and personal loans.
Tip
Tracking spending habits can improve your credit score by eliminating unnecessary debts, because the major bureaus factor in your debt load and percent of credit available. Modern phones with an operating system may have an application available that allows you to enter in your purchases and break your budget down by category. If you have a credit card with a major issuer, it probably tracks your purchases by category, such as groceries and entertainment.
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