| Click on the questions below for more information. |
| What is a credit report? Whenever you apply for any type of credit or financing, a credit report is pulled from at least one of the three major credit bureaus. While there are hundreds of smaller credit bureaus around the country, virtually every credit bureau is affiliated with either Experian, Trans Union, or Equifax.These credit bureaus collect and maintain information on the vast majority of Americans, but they are not affiliated with the government in any way. The credit bureaus are for-profit corporations and they sell your personal information for money. The credit bureaus receive your The credit bureaus collect this Just like when you were in grade |
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| What kind of information appears on the credit report?Merchant Trade Lines These include all regular credit lines such as department store cards, auto loans, mortgages, and credit cards. If there is any history of late payment, or if the trade line was included in bankruptcy, charged off, or put into repossession, the listing will be considered negative by all credit grantors. Collection Accounts When an account is referred to collections because of Court Records Court records include bankruptcies, judgments, liens, Inquiries Every time a potential credit grantor looks at your credit |
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| Who looks at my credit report?With the passing of each year, your credit report is used more and more often as a yard stick to measure your character. Prospective creditors will always review at least one of your credit reports before granting you credit. Today it is increasingly common for insurance companies to review your credit before extending auto or health insurance. Many employers now check credit before they consider you for a position. If you rent, you may have already been through a credit check to determine your worthiness as a renter. |
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| How long will negative information stay on my credit report?The Fair Credit Reporting Act (FCRA) requires that most negative credit items be deleted from your credit bureau file in no more than seven years, except for bankruptcy which can be reported for up to ten years. These are the time limits for reporting negative credit. The creditor or the credit bureau can choose to have the negative credit information deleted whenever they please. Inquiries may remain on the credit report for up to two years.Under the new Fair Credit Reporting Act, no collection or charge off may remain on the credit report for more than seven and one half years from the first late payment that initiated the collection or charge off status. |
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| How can I see my credit report?Most credit grantors are not allowed by the credit bureaus to show you your own credit report. But you can purchase your credit report from the credit bureau for a fee or you may buy it on line through a variety of services.If you order your credit report from the credit bureaus themselves, you may find that you cannot read it because the information is listed in an unfamiliar code. Trans Union and Equifax credit reports are very difficult to interpret and understand. Experian credit reports, however, are relatively easy for most people to read. The Qspace report is one of the most easy to read. |
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| How much bad credit does it take for me to be denied credit?As you may have already experienced, even one small late pay listing may result in credit denials. It is a myth that a large amount of positive credit can outweigh some negative credit. Any negative credit whatsoever can become a substantial credit obstacle.Different kinds of creditors respond differently to bad credit. It is safe to say that your bankruptcy will continue to make it more difficult to get credit for seven years after your last late payment assuming you don't repair your credit. Within two years after the last Auto financing is a little less Credit cards and banks are the least |
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