Frequently Asked Questions Related to Credit Reports Credit reports are very detailed and are often confusing to understand.
Featured below are some answers to common questions regarding credit reports.
Q: How long do negative marks stay on my credit report? A: Usually, any type of credit info, good or bad, stays on your file for seven years from the time of occurrence, or when the account is paid in full or is closed.
There are times when credit will stay on your file for more than seven years.
For example, a mortgage and/or credit card account will be listed on your credit report for longer than seven years.
This occurs because these two types of accounts are typically active for many years.
Also, bankruptcies stay on your credit report file for ten years.
Unpaid tax liens will remain on your file for as long as you are alive! Government student loans that are in default will stay listed for an indefinite period of time.
Q: How can I be 100% sure that negative information is going to be removed from my credit file when it is supposed to be? A: The credit reporting bureaus have complex computer systems that will automatically remove information as soon as they hit their respective seven and ten year expirations.
However, we recommend that you get a copy of your credit report at least once a year to ensure that your credit file is being reported accurately and up-to-date.
Q: What is the purpose of there being three different credit reporting agencies? A: It is likely that each bureau if going to have a different profile on you.
Therefore, three companies allow certainty that your information is present.
However, it is also likely that one of more of your credit files is going to have mis-information or there is going to be information missing.
Below is some more reasoning behind there being three credit bureaus: -- Not all creditors will report your history to all three agencies.
This will result in your info not being present one or more of your files as reported by three credit reporting companies.
-- Even if all of your information is being reported to all three bureaus, it is likely that they will each have a different profile of you since the information is going to be reported at different times.
-- It is very common for creditors to not use all three credit bureaus when pulling your credit file.
Q: What kinds of debts are listed on my credit report? A: Typically, credit cards, auto loans, home mortgages and student loans will be listed on your credit report.
Utilities, cell phone bills, doctor invoices and other types of non-traditional credit will not be present.
Be aware that if you don't make payments on any type of non-traditional account, it will be reported and reflected negatively in your credit report.
Q: How long does new credit take to be reflected on my credit report? A: It usually will take a minimum of 3-6 months for an account to be open before you see any signs of positive credit.
Q: Will my credit score be affected if I get a copy of my report for my own personal viewing? A: Your credit score is never affected when you get a copy for yourself.
Please note that your score is adversely affected every time someone else runs an inquiry.
Q: How is my credit impacted when a creditor pulls my credit? A: As mentioned, your score is adversely affected every time someone else runs an inquiry.
Typically, your credit file will be reflective of all inquiries for the past 24 months.