Keeping a solid credit score is essential for anyone applying for a loan. By making regular payments on debts incurred or monies loaned, you can build strong credit or improve existing credit.
When you are working to build strong credit, you need to know what information will and won’t appear on your credit report. Need additional assistance? The Phenix Group provides credit repair services in Atlanta, Georgia. We’re your advocate and advisor for all things credit-related.
The Role of the Credit Report
Whenever someone applies for a loan or any other form of credit, lenders want to know how the borrower manages debt. This means they will ask for a credit report, which provides them with a detailed record of the borrower’s relationship with debt.
This report contains data about current debts and loans, as well as the history of paying owed money on time and in full. It can include the loan paying history and the overall status of the credit accounts. A majority of people will typically have more than a single credit report.
Information Found on Credit Reports
For anyone to understand what information cannot be found on the credit report, it is first important to grasp what information will appear on the report. Not all credit reports will have the same information, so it’s important to review your credit reports from all three major credit bureaus.
The most common information typically featured on top of credit reports includes personal information, credit accounts, collection items, public records, and inquiries.
The report will include an individual’s name, any name they have used in the past in connection with a credit account, current and former addresses, birth date, social security number, and phone number.
After your identifying information, you will find sections for the following:
- Current and historical credit accounts
- Credit Limit (also known as “amount”)
- Balance
- Payment history
- Date the account was opened and/or closed
- Name of creditor
As for the public records section, this typically includes liens, foreclosures, bankruptcies, civil suits and judgments, and more information on overdue child support. Inquiries refers to companies that have accessed the credit report.
Information Not Found on Credit Reports
While the credit report features a lot of financial information, it only includes financial information surrounding debt. Loans and credit card accounts can show up. However, savings or checking account balances, investments, or records of purchase transactions will typically not pop up.
Any current or historical employers can also appear in the credit report as a part of the personal identification procedure. However, the credit report will not show any information related to an individual’s income. While lenders ask about your income when you’re applying for a loan or credit, this is to determine your ability to repay the loan. As such, this information does not appear on your credit report.
Moreover, non-financial public records, such as arrest and criminal records, will not appear on the major credit reports.
The individual’s medical history and their medical debt, unless an unpaid amount has gone to collections, are also not included in the credit reports. Even if an unpaid medical collection does not appear on credit reports, information surrounding medical conditions, diagnoses, or treatments has to be excluded in order to protect an individual’s right to medical privacy.
Another similar instance is that of utility payments. Information about how an individual manages their utility payments is also not included in their credit reports, unless they have an account that went into default and appears on their credit report as a collection.
Moving Forward With Your Credit Report
When lenders ask for your credit report, it’s important to know exactly what information they’re requesting. The best way to know what is really a part of the credit report is for each individual to review it manually. Anyone can request a copy of their credit report, and they can check their credit report and credit score at least once annually or at any point in time when they are ready to apply for a large loan in order to stay ahead.
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