Credit Reports

The three credit bureaus - Experian, Equifax and Transunion - may differ in the way they format and present information, but in general, all credit reports must contain the same type of information and must exclude certain other types of information.

Basic identifying information such as your social security number and date of birth will appear on your credit report, as well as items related to your employment history such as addresses of recent employers. However, this information is not used in calculating your credit score. Items that are used include:

• Your credit accounts: These are also called "trade lines," and are reported by your lenders. Every time you open any type of credit account, the lender will report the account type, the date the account was opened, what your credit limit is (or the loan amount), and your payment history. Your payment history will be reported every month for as long as the account is open. If your payments are 30, 60 or 90 days late, this will affect your credit score.
• Any credit inquiries: Credit inquiries that have been made on your record will appear on your credit report for up to two years. When you apply for a loan or a credit card, the lender will request a copy of your credit report and this will appear as a credit inquiry. Multiple "voluntary" inquiries in a short period of time may "ding" your credit, as this sometimes indicates a distressed borrower who has reached their credit limit and is looking for additional credit.
• Matters of public record: Information from state and county courts, outstanding judgments, liens, wage garnishment, bankruptcies and foreclosures can all be recorded.
• Collection items: Any overdue debts that have been sent to collections or "written off" are also reported to the credit bureaus, and can have a severe effect on your credit score.

By making payments on time, not defaulting on any loans and adhering to all rules and regulations of all of your financial relationships, you can ensure a good credit score. Unfortunately, sometimes bad things can happen to good credit. If you have fallen behind in a mortgage payment or filed for bankruptcy, these things will stay on your credit report for certain periods of time.

Most Blemishes on Your Credit Report are Removed After 7 Years

If you have defaulted on a loan, failed to pay insurance premiums or neglected to pay your credit card bill on time, these things will appear on your credit report. There is nothing you can do about removing accurate information from your credit report.These types of negative items will be removed 7 years from the time they are initially reported. Also, if you have filed for chapter 13 bankruptcy, this takes 7 years to be removed as well. If you feel as though there has been some sort of an error on your credit report, you should consult all three big credit bureaus to help sort out this problem.

Other Time Limits of Removal of Negative Items from Your Credit Report

There are other instances where it may take longer than 7 years for a negative item to be removed from your credit report. If you have filed for a chapter 7 bankruptcy, it can take up to 10 years for it to be removed from your credit report. It is important to consult with a credit bureau and look over your credit report thoroughly. so that you know what is on it and what it will take to improve it.

There is no real way to have negative items removed from your credit report before the time frames mentioned above. Some people choose to consult "credit doctors" or other companies that offer a quick fix. These are rarely successful and can only lead to more trouble down the road.

The best thing to do is to watch your credit carefully and make sure to be vigilant about paying your debtors.

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