Your credit report contains your credit history as reported to the credit reporting agency by lenders who have extended credit to you. In order to find out which of these problems may affect your credit, we recommend you get your free credit reports at least once a year, as well as monitor your credit score for free at You will get a complete explanation of the factors affecting your score, as well as an action plan for better credit. Experian, for example, no longer reports accounts that are more than ten years old if the account is closed and there is no activity on it. Accounts such as credit cards and mortgages can stay on a credit report for many years if they are open and active.
Have been removed from your credit reports years before the actual record of filing chapter 7 is removed. Once paid, the will remain on your credit reports for seven years from the date they were filed, not the date you pay them off. It is possible to get unpaid tax liens removed from your credit before the tax debt is satisfied if you qualify for the IRS Fresh Start program. Each of the credit bureaus hard codes their credit reporting systems to look for the purge from” dates. Unless you believe that an account is being reported past those time limits, there is no need to remind the credit bureaus that an item is to be removed. Still, it’s a good idea to check your free credit report each year to make sure that is the case. SPECIAL NOTE ABOUT COLLECTIONS: Collection agencies will often report debts to the credit bureaus in an attempt to collect from the consumer.
The issue here is that, intentionally or not, collection agencies sometimes report to the credit bureaus using a newer purge from” date despite the fact that this is not allowed under the Fair Credit Reporting Act. The result of this misreporting is that the collection item will remain on the credit file longer than they should. Industry consolidation has whittled what used to be scores of local and regional credit bureaus down to the three that we know of today: Equifax, TransUnion and Experian. There was a day when you actually had a local credit bureau that would sell your credit file to lenders in your geographic locale.
Over the past several decades the big three” gobbled up these smaller credit bureaus in an effort to become truly national” in their coverage. What this means is that if you lived in Miami all your life and then moved to Anchorage that your credit report would still follow you despite all of your credit having been issued when you lived in south Florida. The benefit of these national credit bureaus is that you won’t lose any of your solid credit management history simply because you’ve moved to another part of the country. Likewise, moving to another part of the country will not rid you of any negative credit reporting challenges that you may have faced in the past. This means that the inquiry” is only going to show up on one of your three credit reports.
Not all of your lenders report to all three of the credit bureaus – While some lenders do report your credit information to all three credit bureaus, this isn’t mandatory. There are almost always going to be differences in your credit history at one or more of the credit bureaus, though many will be minor and won’t affect your ability to get credit. Even if all of your lenders DO report to all three credit bureaus the information will probably be different – The lenders that do report to all three credit bureaus do so by sending data tapes to them each month. The problem is that the credit bureaus may not receive them at the same time and don’t run” them at the same time. Not all lenders pull a credit report from all three credit bureaus when they are processing your credit applications – When you applied for that credit card or auto loan your lender most likely chose to pull only one of your three credit reports. They are set up as lenders so the hard pull” will count against the consumers score.
Most mortgage lenders will pull all three of your credit reports during their loan processing practices. Credit scoring models will also view you more favorably if your delinquent obligations are paid in full. Since credit scoring is used in almost all of your credit transactions it’s in your best interest to maximize your scores by paying off your past due obligations. Most of them will eventually make it to your credit reports if you refuse to or cannot make your payments. It goes without saying that most of your traditional credit goes on your credit reports; auto loans, mortgages, credit cards, student loans and retail store cards. The following are some non traditional” types of credit that don’t make it to your credit reports: utilities, cellular phone service and doctor’s bills. These credit items generally won’t show up on your credit reports unless you stop paying them.
A low score is a result of poor credit management, or life events such as divorce or serious illness. Your credit history reflects that you are missing or have missed payments and/or you have too much debt. These two occurrences will make it very hard to earn a high score because they drive about 65% of the points” in your credit scores. Be patient – After reviewing your reason codes you may realize that a plan to rebuild your scores may take longer than you’d like. A low score caused by delinquencies will take time to rebuild because delinquencies stay on your credit files for years. However, as these delinquencies age, their impact on your scores will lessen and your scores will increase as long as you now manage your credit well and pay accounts on time.