Credit Reports » Reading a Credit Report

Reading a Credit Report

What Goes Into Your Credit History?

Your credit reputation is developed over time.  You aren’t born with good credit (even rich kids don’t start out with a good or bad credit history).  Your credit reputation develops once you start having access to and using credit.  Only once you start repaying creditors (such as credit card companies, car finance companies, etc.) does information start building in your credit report.  See, the only information that goes into a credit report is information that was reported to the credit bureaus.  Not all companies report to the credit bureaus. 

People who never open a credit card account, or who never pay a utility bill in their name may never have a credit history.  These folks are referred to as “thin file” or “no file” people in the credit world.  They never have established a credit report and may not have a credit score.

Not having a credit score is pretty much the same as having a bad credit score.  Unless you live in a cave, don’t have a job, don’t need insurance, and walk everywhere, you most likely will need a credit history to exist in 21st Century America. 

It is important that you establish a credit reputation if you don’t have one.  It is even more important that you establish a good credit reputation.
So who reports information about you to the credit bureaus? Here are a few examples:

• Banks and lenders that you have loans or credit cards with
• Banks and lenders where you applied for credit (or inquired about getting credit)
• The Government and Court Systems
• Collection Agencies
• Utility companies
• Landlords
• And many, many more…