Credit History

Items Included in Credit History

Obtaining a copy of your credit report can give you an accurate look at your credit history. Every year, one of the big three credit bureaus (Equifax, Experian, TransUnion) is required to issue a report free of charge.

Your credit history will be shown on the credit report. Along with your personal information like name, address, employment history, Social Security number, and your credit score, the history will also include details on credit accounts in your name or on which you were listed as an authorized user.

Details included are:

• Date account was opened
• Credit limit or amount of loan
• Payment terms
• Balance
• History of payments and whether they were on time

Up to two years of credit inquiries can be listed on your account. Inquiries are listed whenever someone looks up your credit report for whatever reason. Credit issuers do not like to see signs of frequent inquiries within short periods of time.

Finally, some public records become a part of credit history. Liens, bankruptcies (up to 10 years) and delinquent child support payments can be included.

Ways to Keep History Clean

Keeping your credit history clean requires simple and easy steps. The following tips may help:

• Keep debt to less than 30 percent of available credit.
• Pay at least the minimum or higher on all lines.
• Do not cancel credit cards that show a lengthy and good history of payments.
• Pay bills on time or set up an automatic payment.
• Do not open lines of credit just because you can.

Periodically checking your report and history is another way to keep up with your history. Disputing errors is a lengthy process but worth it. To dispute an error, contact the bureau reporting the problem with written documentation of the problem. The bureau should then report your information to the company that submitted the incorrect information. The information source then should conduct an investigation.

If your dispute is resolved to your satisfaction, it may take up to 30 days after the investigation to change your credit report. To be most accurate, check with all three credit bureaus yourself to make sure the inaccuracy is removed from your history.

If no resolution is met, you can attach a brief statement explaining the dispute that will appear with the credit report as long at the disputed claim shows up.

Ways to Fix a Bad History

Fixing a bad history is worth the time it takes. Legally, accurate information cannot be removed from your credit history. However, you can begin building a better history by following these steps:

• Have a co-signer for a new credit line or small loan, and then stay current on payments.
• Get a secured credit card and make sure histories are being reported to credit bureaus.
• Begin making payments greater than the minimum on large credit card debts.
• Find a credit counseling program if your problem seems too much to manage.
• Do not open multiple new lines of credit.

Working to slowly reduce credit card debt and build a good history can help raise your credit score. In the long run, this will help you with future purchases, loans, and even job offers.