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Credit reports are usually divided into four areas: personal identification information, credit history, public records, and inquiries. The credit account history section lists each account, the account number, the date the account was opened, the type of account (i.e. installment, mortgage, car loan, revolving), and the total amount of the loan. The credit account history may also include the balance of each loan, payment schedules, account status (open, closed, paid, etc), and the payment history. It may also list the names of cosigners or others who are authorized to use the account.
Depending on the type of account, most credit account histories include information that dates seven to 10 years. Credit accounts that were paid as agreed, for example, stay on a report for 10 years. If the account was not paid as agreed, the information will be reported for seven years. Collection accounts stay on a report for seven years as well. The three main credit reporting agencies—Equifax, TransUnion, and Experian—gather and store this information from banks, courts, lenders and other related entities. They use this information in your credit account history and public records to determine your level of credit risk.
It’s a good idea to review your credit report regularly to correct any inaccuracies that might appear in your report. Additionally, it can be helpful to identify and address areas of your credit that may be damaging to your ability to qualify for additional loans. Finally, if you are not sure how to deal with a specific credit issue, seek the advice of a nonprofit credit counselor or trust financial advisor.
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