You and Your Credit Report

Americans are living way beyond their means. Savings rates are at a 25 year low, and personal bankruptcies hit a record high in 2004. With social security in the current state, now is the time to get out of debt and save for tomorrow. The first step is fixing your credit score, which is no easy task.

Credit bureaus are private, for profit companies that gather information about your credit history and sell it to banks, mortgage lenders, credit unions, credit card companies, department stores, insurance companies, landlords, and employers. They get most of the information from creditors, court records for lawsuits, judgments, bankruptcy filings, and county court records of recorded liens.

In fact, most negative information can stay on your credit report for seven years, including lawsuits, judgments, paid tax liens, accounts sent to collection, criminal records (except criminal convictions, which are reported indefinitely), late payments, and overdue child support. Some United States government insured or guaranteed student loans or national direct student loans can be reported longer. Bankruptcies stay on your credit report for ten years from the date of the last activity, which is usually the date you received your discharged.

Your credit report typically lists the names of your creditors, the type and number of each account, when each account was opened, your payment history, your credit limit or the original amount of the loan, and your current balance. Your credit report will also show if the account has been turned over to a collection agency for nonpayment. Your report could also include past and present addresses, names you previously went by, your social security number, your employment history, marriages, and divorces.