Chapter 2: What is on Your Credit Report

Reading a credit report is not always easy! They are full of coded information that can be quite confusing. Remember, the primary function of these reports is to help businesses to make decisions, and codes simplify that process. If you read through your report line by line, though, and use the key provided,  you will be able to get a good understanding of what is being reported about you.

No matter where and how you access your report, the same categories of information will be listed:

• Identification. Most credit reports begin with personal data, such as your name and any former names. It also lists a history of your addresses and employment, changes in marital status, your date of birth, and your social security number.
  
  
• Public records. The public records section reflects all lawsuits to which you are a party, as well as any liens or legal claims on your property. Any type of activity that is recorded with the county will be reflected here too, including bankruptcies, judgments, foreclosures, and court-ordered child support collections.
  
  
• Trade lines. The bulk of a credit report provides detailed information about your credit history. Read this section carefully for accuracy, as well as to know when any negative information is due to drop off. It will list such data as:
  • The names of your creditors and their partial account numbers.
  • The dates of last payment activity.
  • The date you opened each account.
  • Your payment history.
  • If you have made payments late, the number of days you are or were past due will be indicated.
  • Each account’s current balance.
  • Whether accounts are held jointly or individually.
  • Whether accounts are open, closed, or in collections.
  • The credit limit for each account.
    
    
• Inquiries. Each time you apply for credit, an inquiry appears on your credit file. Inquiries also appear when a creditor checks your file after you’ve applied for credit, when your current creditors do a routine credit analysis, and when a potential landlord or employer checks your report.

Time frames
Don’t despair if you have negative information on your credit report. Most of those items are removed automatically after a specific period of time (often called “ageing off”). Accounts that you have consistently paid on time, or that were paid in full as agreed may be reported indefinitely. Having this kind of long-term positive information on your report reflects well on you as a credit risk.

So what will eventually be purged from your credit file, and how long will it take? It depends on the activity:

• Inquiries are reflected on your credit report for two years.
  
  
• Lawsuits, judgments, liens, foreclosures, Chapter 13 bankruptcy, and late payments, will show for seven years from the time they were reported. The seven-year period for Chapter 13 bankruptcy begins on the date of filing. For accounts in collection agencies, the period starts the date the account was written off by the original creditor and sent to the collection agency.
  
  
• A Chapter 7 bankruptcy will remain for ten years from the date of filing.