What’s In My Credit Report?
A Google Consumer Survey has found that nearly one-third of Americans have never checked their credit report. In this entry, we’ll talk about why your credit report is so important and also share information about how to get a free copy of yours.
What’s Contained in My Credit Report?
Essentially, your credit report is a summary of your purchasing and paying habits. It includes the types of credit you’ve used, the amount of time your accounts have been open and whether or not you paid your bills on time. Rather than having to rely on data from specific banks or vendors you have used in the past, your credit report provides lenders a broader view of your purchasing history.
How is My Credit Score Calculated?
Your credit score is a calculation based upon different pieces of credit data from five different categories:
- Amounts owed
- Payment history
- Maximum amount of credit available
- The length of your credit history
- New credit
Who Maintains my Credit Report?
Equifax, Experian, and TransUnion are the three bureaus that issue credit reports to creditors, insurers and other businesses as permitted by law. Each month, updates to your credit report are sent to those three bureaus by retailers, banks, credit card issuers, finance companies, etc.
How Long Does Negative Information Stay on my Credit Report?
Generally, any negative information about your payment habits will stay on your report for seven years. If you’ve filed for personal bankruptcy, information about it will stay on your credit report for 10 years.
Will a Low Credit Score Forever Haunt Me?
Absolutely not! Think of your credit score as a snapshot in time. It changes as new information is added to your files. You should see your score change – even if gradually – as you change how you handle credit.
Will My Credit Score Drop if I Apply For New Credit?
If it does, the drop will probably not be enough to notice. If you apply for a host of new credit cards within a short period of time, the multiple requests (called “inquiries”) will undoubtedly ding your score a little bit.
I Should Assume All Information on My Credit Report is Accurate, Right?
Wrong! In 2013 alone, the Federal Trade Commission (FTC) released a report stating that as many as 42 million people may have credit reports with faulty information. “The results of this first-of-its-kind study makes it clear that consumers should check their credit reports regularly. If they don’t, they are potentially putting their pocketbooks at risk,” said Howard Shelanski. Director of the FTC’s Bureau of Economics.
How Much Does It Cost to Get a Copy of My Credit Report?
It should cost you absolutely nothing! Federal law mandates that each of the three bureaus (Equifax, Experian, and TransUnion) provide you with a free copy of your report – at your request – once every 12 months.
Tired of Living With Crippling Debt? Call The Oswalt Law Group
If you’re drowning in debt and are looking for the best way to pay it off, personal bankruptcy may be the right solution for you. There is a host of other ways of dealing with the debt, as well. Because everyone’s situation is different, we invite you to call us here at The Oswalt Law Group for a free consultation. Our number is 602-225-2222.