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Articles » Free Annual Credit Report | | What Are The Negative Information That Can Be Reflected On A Credit Report And Who Has The Authority To Report That Information? |
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Your credit report , in an ideal world, should be a reflection of your entire credit history, both positive and negative. Unfortunately, it is usually the negative information that is the most prevalent. There are a number of different entities that can report that negative information and each entry will lower your overall FICO credit score.
When you know what these negative factors are, you can repair your credit and remove negative items from your credit report.
One of the categories on your credit report is Public Record accounts. These are almost always negative entries. They include bankruptcies, tax liens, and judgments against you. Courts, the IRS, and state revenue and tax departments report this information to the credit bureaus and it will stay on your credit report for seven to ten years. Criminal convictions can remain permanently.
Payment history is another area where negative information can be entered and affects your credit rating and score . Late payments, defaulted loans, and canceled accounts are all detrimental to your credit report. These are reported directly by your creditors on a monthly basis. Not all credit card companies report, but most of the major ones do. You will also see mortgage lenders, automobile finance companies, and sometimes utility companies in this section.
Collections are entries on your credit report that can result in a substantial hit on your credit score. Collection accounts are usually reported by the creditor when they transfer an account to a collection agency. The seven year statute of limitations begins on the date the account is first assigned to a collection agent and does not reset if the agency sells the account to someone else.
Each credit bureau uses a different scoring system and has different criteria when it comes to entering information on your credit report. Your credit scores from each will vary slightly. There are also expanded credit scores now that take into account non-traditional information such as rental payment histories and other factors that are not regularly reported. It’s important to keep a close eye on all the information on your credit reports and contest anything that is incorrect, particularly anything negative.
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