Credit Report Facts Every Adult Should Know
A credit report is an accumulation of information about how you pay your bills, repay loans & how much credit you have available. Credit Reports track your ENTIRE credit history. Here's a list of
Important facts every adult should know about credit reporting:
1. Collection accounts generally remain on your credit file for seven years from the date the account first became past due. Accounts paid as agreed generally remain on your credit file for up to ten years from the date of last activity.
2. You are entitled to obtain a FREE copy of your credit report annually, from all three credit bureaus. Keep in mind they are not identical triplets. Get yours here www.annualcreditreport.com
3. You can get old debt removed from your report, & by old debt I mean the debts that have already fallen off your report but was sold to another collection agency (yes creditors sell bad debt).
4. You can and should dispute any debt errors on your report.
5. Payment history is your payment performance & its recorded on all three credit reports- this is how your FICO score is determined so PAY ON TIME!
6. Public records (such as lawsuits & foreclosures) appear on your report.
7. There are two types of credit inquiries, Hard Inquiry- voluntary inquiries by your own request for credit & Soft Inquiry- involuntary- Inquiries when lenders order your report.
8. Hard inquiries could lower your credit score by a few points and may remain on your credit report for two years.
9. The "Pre-Approved" credit offers you receive in the mail- are considered soft inquiries and do not show up on any version of the report except for the version you get.
10. Your credit score is calculated from your credit report.