Much information is contained in the average American’s credit reports. Among other things, a credit report reflects the activities on an individual’s credit accounts (called tradelines), which include mortgage account, credit card, installment loan such as car loan, and secured or unsecured lines of credits. Information reported include the creditor’s name, account number, type of account, date the account was opened, credit limit, outstanding balance, past due amount, date of last payment, terms of the account, length of account, and number of times of late payments. Besides open tradelines information, closed tradelines histories are also kept in the report.
It is always a good idea to receive your free copy of your credit report to check it for any inaccuracies. Sometimes by fixing any mistakes on the report, your score will increase. It depends on how heavily the inaccuracy counted towards your score.
It is highly important to check your credit at least once a year to check for any errors. If there are any, it is critical to report and dispute these errors so that you may have them taken off.
Credit cards, mortgages, auto-loans and even student loans are examples of what are in your credit report. It shows the balances of each and if you are paying on time.
Credit reports will usually also contain some personal information about a consumer. Some of this personal information is: date of birth, current address, previous address(es), current employer, previous employer(s), how long at current job, how long at current residence, a general summary of all credit, public records (such as bankruptcies, foreclosures, and judgments), different name variations that you may use or have used, a list of creditors that you have applied for credit with for the past 360 days, and any comments you may have placed in your credit file. Your credit report contains a lot of information about you besides the obvious credit information and your credit scores.
Not all credit reports include scores. Your free annual credit report contains all of your information but omits the scores. The scores can be purchased separately for a fee directly from the credit bureaus.
Closing an account will not remove it from your credit report. Also, closing an account may not help your credit score and may actually hurt it.
Closing an account will remove an aged and seasoned account from the list of tradelines the credit bureaus use to determine your credit history. The older the account is, the greater impact it has on your overall credit score. Even if the account is in collection because of delinquency, it still may have a positive impact on your score. Keep in mind that if you pay off a collection account that is rather old, the creditor will usually update the "last reported date" on the tradeline and it may hurt your credit score. Consult your mortgage professional BEFORE you pay off old collection or charged off accounts.