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Sow a Good Payment History to Reap High Credit Scores

By Andy Snyder
Published: Tuesday, December 8th, 2009

There are 3 major credit reporting companies (Equifax, Experian, and TransUnion). All of the 3 stays afloat because of your credit reports and credit scores. It is their job to collect data and information about your financial history which afterwards, they rate and come up with the highly popular and anticipated credit score. Thus, a credit report advice is for you to study and learn the ins and out of a credit report. What is a credit report and what does it contain?

As a credit report advice, remember that a credit report has basically 6 parts:

  1. Information about the consumer – This part will include the basics like your name, birthday, address, and employer. It will also be the part where your social security system (SSS) and insurances information can be found.
  2. Consumer statement – this contains a “statement “from the consumer. This may be a fraud alert, or an explanation about the not-so-good data like delayed payments, etc.
  3. History of account – the time frame credit reporting companies use is a 7-year payment history of credit cards, installments, etc. It is also good to note that this will include a “hierarchy of madness” or simply gauge to the severity of your delayed payments. A 30-day payment delay is considered acceptable while a 90-day delayed payment is enough for you to be considered “mad” in their reports.
  4. Public records – This part contains information regarding bankruptcy (if any), tax liens, judgment fillings, etc.
  5. Inquiries – This part includes inquiries made by you or a credit company. Examples are your inquiry about your current credit score card or about any significant change in your file which may prompt you to be alert for identity theft. A common inquiry made by credit companies will be about your payment history or if you had ever filed for bankruptcy. A good credit report advice will tell you that filing for bankruptcy greatly affects your credit scores.
  6. Creditor – This part will include contacts, mailing addresses and phone numbers of creditors which will prove to be very handy, maybe not in your present situation but in the near future (who knows! you might be needing a car loan tomorrow)

What you have just read above will help you understand the credit report more. Knowing the type of information the credit companies are looking for keeps you prepared for the odds. If what you aim is a credit score card of 800 or more, keep your credit report free from unwanted data, and that is on good credit report advice to keep in mind. 

It is indeed a fact that though there are 3 major credit reporting companies (Equifax, Experian, and TransUnion), and that each will take part in your final credit score. It is also good to know that whether a credit reporting company uses a FICO score or Vantage, your median score (the average) will not be that far from each other. What a credit report advice is trying to point out here is that, it is basically you who will mainly put information to your credit report. What you sow, you reap.

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