Learning About Credit Report History

By Author: Tracy Narvaez
Total Articles: 348
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One of the most important parts of a consumer's life is their credit. The information contained in your credit report is used for many different things, from determining whether or not you can buy a home or car to getting a job. Your history contains all of the information that companies use to make their decisions.

There are three agencies in the US that are responsible for maintaining consumer histories. Each agency will have some of the same information, but there will be a lot of information that will be different. Not every business reports to all three agencies, so it is a good idea to get a copy from each one. There may also be some accounts that you know you have had that are not listed at all.

On your reports, you will notice a category that is called Trade Line or something similar. This is the term used to describe accounts, in general, but within this category there are three sub-categories. Mortgage accounts are loans that have used real estate as collateral in securing the loan. Installment accounts are those when you pay a set payment for a specific period, such as car loans. Revolving accounts are ...
... accounts that remain open, have a set amount you can use, and require monthly payments to pay down the limit.

The second section to pay attention to is the inquiry section. There are only specific instances when inquiries will appear. If you apply for an account with a lender or creditor, called a hard inquiry, they will request a copy of your history and this will be counted as an inquiry. In some cases, companies with whom you have existing accounts will occasionally request another copy of your history, which is called a soft inquiry.

Your accounts are separated based on the status of the account. If you pay regularly and on time, the account is listed in the positive section. Late payments, defaulting on loans, and other such things put the accounts in the negative section. Creditors look at both sections to determine if you will be approved and how much your limit will be.

It is not uncommon to find mistakes in your history. In fact, almost 80 percent of the reports that are pulled each year contain errors of some kind. Most mistakes occur with accounts you may have paid off and closed or you have accounts listed that you never actually had. For these errors, you must file a dispute with the reporting agency.

There is a process to disputing items that you find in your history. You will need to provide all of the information that is given about the company and the account, including the company's address, account number, and limit amount. The agencies contact the company and the company has 30 days to respond. Once they have determined your claim is correct, the reporting agency removes the account from your history.

The credit report available to consumers is made a little easier to understand than it once was. It is becoming clearer that people need to keep track of their own information instead of waiting for someone to decline a loan and inform them of what was found. At the same time, there is a legal restriction placed on who can access your history and when they can do so.

Get tips on how to read a credit report and information about a reputable provider of credit report management services, now.