Your credit history determines whether or not you qualify for a loan, and at what rate of interest you can borrow. Having a good credit history means you get better rates, higher credit limits, and other benefits. If you have been denied credit because your credit report indicated an “insufficient credit file” or “no credit history,” you may find that some accounts you have with creditors do not appear on your credit file.
The information in your credit report is reported independently to the credit bureaus by your creditors themselves. While most bank cards and department store cards will be included in your credit file, some creditors do not report information regularly to the credit bureaus. Gasoline company credit cards, local retailer card, credit unions, and some travel and entertainment cards are among the companies that do not always report your credit accounts to the three major credit bureaus.
Adding these accounts to your file can make a big difference in your credit score. Your credit score, or FICO score, is a three-digit number that represents a statistical analysis of your creditworthiness. Your credit score is based on the information in your credit report, which is usually sourced from the three major credit bureaus. Your credit history plays a major part in how your credit score is calculated. Of the weighted considerations used to calculate your credit score, 35% of your score is based on your payment history, and 30% is based on the amount you owe versus the amount of credit available to you. If you have accounts that are not appearing on your score, adding them may boost your history of on-time payments, as well as the ratio of credit available to you versus balances you carry. If you have accounts that don’t appear on your credit file, ask the credit bureau in question – Experian, Equifax or Transunion – to add this information in future reports. They are not required to do so, but they may do so for a reasonable fee. However, you may need to follow up periodically as added items may fall away from your file if the creditors do not report the accounts on a regular basis.