What Exactly is My Credit Report?

January 25, 2008
Yesterday I posted information on steps you could take to improve your credit rating. I received a question requesting an explanation of what all is included in a credit report. A credit report will include all credit accounts obtained through banks, retailers, credit card issuers, etc. The report will also include any public records such as judgements, tax liens and bankruptcy. The report will also show any inquiries and the names of companies who have obtained a copy of your credit report. (The latter is a bone of contention as inquiries can cause rating companies to lower one's credit score.) The information on the report will only reflect the credit grantor's reports. Not all credit grantors report and some only report to one credit bureau and not to all three. The three major bureaus are Equifax, TransUnion and Experion.
The credit grantors give the bureaus the payment history of your credit file. This includes both open and closed accounts. Also payment in full will not remove the credit history for the paid off account.
So how long will the information remain in your credit file?
Open accounts paid as agreed may remain on your credit profile indefinitely.
Negative credit history is removed after 7 years.
Collection account remain 7 years from the date the account was place with a collection agency.
Charged off accounts remain for 7 years from the date of the last activity.
Bankruptcies remain for up to 10 years.
Paid tax liens remain up to 7 years from the date released. Unpaid tax liens remain indefinitely.
Judgements remain for 7 years from the date filed.
Inquiries will remain for up to 2 years and impact a credit score for 1 year but will only appear on a mortgage report for 90 days.
Bottom line - It is important to manage your use of credit and make those monthly payments as agreed - i.e. on time.