Your credit report plays a critical role in your overall financial health. The information that it contains will affect your ability to get new lines of credit for auto or personal loans, rent an apartment, and sometimes even get a job or promotion. It’s important to understand all of the information on your report and what types of negative listings may appear.
Every person’s credit report has the following:
- Personal information. Your name, current and previous addresses, social security number, date of birth, and possibly current and previous employers.
- Credit accounts. Current and previous credit accounts including details such as payment history, credit limit, monthly payment amount, and current balance. Auto loans, student loans, credit cards, and any other type of credit accounts in your name will be listed.
- Inquiries. Hard inquiries are listed on your report when there is an application for new credit, and may remain on your report for up to two years. Several hard inquiries, which may be viewed by a lender as high risk, may lower your credit score and impact your ability to be approved for credit. Soft inquiries are listed by companies offering to promote a special product or service and do not hold negative weight on your report.
- Negative listings and public records. Late payments, debt, accounts in collection, repossessions, accounts in default, bankruptcies, foreclosures, and judgments are all listed on your credit report. Negative information can stay on your report for up to seven years and will lower your credit score. It may make it more difficult to get approved for new credit, or could result in higher interest rates on any loans or credit.
What you can do about negative listings
Negative listings on your credit report are frustrating, especially if you’re making an effort to improve your financial situation. Take steps to pay down debt over time.
-Monitor your credit reports
-Dispute errors with the credit bureau and credit furnisher
-Pay your bills in full and on time
-Make a budget and stick to it
These positive actions will help improve your credit and show that you’re on the right track, even while the negative listings remain.
Seek Legal Help
Flitter Milz is a nationally recognized consumer protection law firm that represents victims of car repossession, credit reporting errors and unfair debt collection practices. Contact Us for a free consultation to determine whether your consumer rights were violated.
