Essay Example on Credit Reports What is NOT part of your FICO









Credit Reports What is NOT part of your FICO Credit Score Credit Reports are Historical Plain and simple a credit report is a historical record of your use of credit A credit score is a numerical grade whose calculation is based on that history in your credit report FICO is a registered trademark that happens to represent the apparent gold standard and is the most used credit score by credit card and other lenders Other than your credit history a credit report retains information from applications Each time you complete a credit application that information is stored as self reported None of the information is cross verified by each agency This makes room for errors as well as the compilation of superfluous data It's wise to check your report and correct the history even that history that is not calculated into the FICO score You report your income on an application The place of work and position will be stored Income or Salary information is not stored and is not a part of your credit history Income and expenses clearly factor into whether you will be approved for many loans but income is not reported Net Worth Income 

Title or Position at employment whether you are are not actually employed are not verified and do not appear unless reported by you If you are fired that fact also is not reported To be clear any application will ask you these questions And so the information hits the report But credit reports are not verified by an army of investigators looking for information Is all Debt Reported Any debt you owe if it comes to the hands of a professional collections agency will appear front and center even if the original creditor did not share the information Lots of small accounts the cable bill your wireless service does not make it to your credit report unless you fail to pay and a collections company takes over Medical debt is not supposed to be reported However most unpaid medical quickly moves into a collection agency and shows up at breakneck speed on your report Some states have made attempts that have no medical debt on a report Just the same when a collection agency is brought into the mix beware When you buy anything like a home and the seller is the lender or for most any private loan nothing will appear on your credit report Credit reporting requires that the creditor have a membership or contractual relationship with each credit reporting agency Most individual lenders do not qualify and do take the time to officially report Your faithful timely payment of apartment rent will not show up unless you act and pay a service that handles and verifies posting the historical record This is a new option and we will cover this in one of our short articles Debit cards and prepaid cards have no role in credit and appear nowhere on credit reports

Another important thing unpaid parking tickets as well as many municipal or city based bills have an odd way of appearing on your report Don't avoid paying them What appears on one report may not appear on all reports Just because one report shows it does not mean the others will Some smaller banks will only use one report A mortgage on the other hand will likely show up on all three Spouse Parents Children s Credit Your spouse's credit is a different profile than yours That said if you are co signers on all the items then you may well end up with similar scoring issues In theory if you are authorized user your score is not affected Criminal Activity is not Credit Activity A credit report should not be confused with a criminal record Criminal activity is not a part of your credit profile If however any criminal activity resulted in a judgment for money against you well that judgment might appear

 Civil Judgments are front and center If you file bankruptcy the federal filing will stay on your report for a minimum of 10 years The impact of a bankruptcy on your ability to get credit is beyond the scope of today's article but the fact is the fact Stays on for 10 years and then most likely you will need to dispute the item to have it cleared Civil judgments will appear if they have been properly filed Delinquent Child Support will appear in most cases This could be a collection item a judgment or a simple line item This reporting varies often by state and depends upon how old the collection item might be There are several items to consider when building maintaining or re building good credit Focus on good clean information is key to a foundation Ideally this article gives you some guidance into where the information comes from as well as what information does not belong The big picture is that you obtain credit use it and pay on time At the same time there is value in keeping the other data clean

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