Contrary to popular belief, there is more information in your credit report than just credit information. There are four main sections of information in your credit report, and a fifth section that contains the names and addresses of all creditors and companies that have requested credit inquiries.
The first section is identifying information. This section contains mostly information that you have supplied to creditors whenever you applied for various types of credit. In other words, the information that you fill out on a loan application is typically reported to the credit bureaus as well. This includes your full name, social security number, address, employment information, and even whether or not you own a home.
The second section is your trade line information. This contains information about all credit accounts that you have opened or have been active over the last seven years, inlcuding mortgages, installment loans, credit card and other finance accounts and collections and charge-offs.
The third section is the public records section. This contains specific information about items that are a matter of public record, such as bankruptcies, judgments and tax liens. While bankruptcies drop off after 7-10 years, judgments and tax liens may remain much longer, depending on the statute of limitations for the state in which you reside.
The fourth section contains information about credit inquiries. These are companies or individuals that have requested your credit as a result of a direct application for credit, insurance or employment. Not all of these inquiries affect your credit score, but they do remain on your report for 1-2 years.
And the fifth section is a summary of all creditors that you have active or closed accounts with, whether it be open or closed accounts, collections or charge-offs. The creditor's name, address and usually telephone number should be included in this section.
Keeping a handle on the information in your credit report is important for many reasons. Nowadays, many insurance companies and even employers look at credit reports and credit scores in their decision making process. Viewing your credit reports and scores on a 3-in-1 credit report is the easiest way to get a complete, accurate picture of the information that creditors, insurance companies, and employers view about you whenever you make an application. The five main sections of your credit report should be analyzed and verified for accuracy.
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