5 Types Of Accounts That Appear On Your Credit Report

Your credit report is a detailed record of your credit history and is what lenders, landlords, and other financial institutions use to assess your creditworthiness. It’s also this report that credit-scoring companies like FICO and VantageScore use to calculate your credit score.

Understanding which accounts appear on your credit report is important. The reason? Each type of account may impact how your credit score is calculated, as well as how lenders, businesses, and financial institutions view you as a borrower when you apply for financing.

Which Accounts Appear On Your Credit Report?

Here are five types of accounts that appear on your credit report:

Credit cards. If you have a credit card, it will appear on your credit report. This includes both personal credit cards and business credit cards. Your credit card balances, payment history, and credit limits will all be reported on your credit report.

Loans. Any loans that you have taken out, such as student loans, auto loans, or mortgages, will appear on your credit report. Your loan balances, payment history, and credit limits will all be reported on your credit report.

Payment history. Your credit report includes a record of your payment history, including whether you make payments on time and in full. Late payments and missed payments can negatively impact your credit score.

Credit inquiries. Whenever you apply for credit, a credit inquiry is made on your credit report. These inquiries can be made by lenders, landlords, and other financial institutions. Too many credit inquiries in a short period of time can also negatively impact your credit score.

Collection accounts. If you have unpaid debts turned over to a collection agency, these accounts may appear on your credit report. Collection accounts can have a significant negative impact on your credit score.

How Long Do Accounts Stay On Your Credit Report?

The credit reporting time limit refers to the length of time that information, such as your credit accounts, can remain on your credit report.

Credit accounts. Credit accounts, such as credit cards and loans, will generally stay on your credit report for up to 10 years from the date they are closed. This includes accounts that have been paid off or settled.

Payment history. Your payment history, including late payments and missed payments, will stay on your credit report for up to 7 years.

Credit inquiries. Credit inquiries, which are made when you apply for credit, will stay on your credit report for up to 2 years.

Collection accounts. Collection accounts, which are unpaid debts that have been turned over to a collection agency, will stay on your credit report for up to 7 years from the date of the original missed payment that led to the debt being sent to collections.

Public records. Public records, such as bankruptcies, liens, and judgments, will stay on your credit report for varying amounts of time depending on the type of record. Bankruptcies can stay on your credit report for up to 10 years, while liens and judgments can stay on your credit report indefinitely until they are paid.

How Accounts On Your Credit Report Affect Your Credit Score

Your credit score is a numerical representation of your creditworthiness, and it’s based on the information contained in your credit report. It’s important to understand how the accounts in your credit report can affect your credit score. Here’s a guide to understanding the factors that impact your credit score:

Payment history. Your payment history is one of the most important factors that impact your credit score. Lenders want to see that you have a history of making on-time payments and that you are able to manage your debts responsibly. Late payments and missed payments can have a significant negative impact on your credit score.

Credit utilization. Your credit utilization, which is the amount of credit you are using compared to the amount of credit available to you, can also impact your credit score. It’s generally recommended to keep your credit utilization below 30% to maintain a good credit score.

Length of credit history. The length of your credit history can also impact your credit score. A longer credit history can be seen as a positive by lenders, as it demonstrates a track record of responsible credit management.

Credit mix. The mix of credit accounts you have, such as credit cards, loans, and lines of credit, can also impact your credit score. A diverse mix of credit accounts can be seen as a positive by lenders.

Credit inquiries. Credit inquiries, which are made when you apply for credit, can also impact your credit score. Too many credit inquiries in a short period of time can be seen as a red flag by lenders, as it may indicate that you are taking on too much debt.

How To Keep Your Credit Report Clean

Here are some steps you can take to keep your credit report clean:

Pay your bills on time. Payment history is one of the most important factors that impact your credit score, so it’s important to make sure you pay your bills on time. Set up automatic payments or reminders to help you stay on top of your bills.

Keep your credit utilization low. Your credit utilization, which is the amount of credit you are using compared to the amount of credit available to you, can also impact your credit score. It’s generally recommended to keep your credit utilization below 30% to maintain a good credit score.

Don’t apply for too much credit at once. Credit inquiries, which are made when you apply for credit, can also impact your credit score. Too many credit inquiries in a short period of time can be seen as a red flag by lenders, as it may indicate that you are taking on too much debt.

Dispute errors on your credit report. If you find errors on your credit report, it’s important to dispute them as soon as possible. You can dispute errors on your credit report by contacting the credit bureau and providing documentation to support your claim.

Use a credit monitoring service. A credit monitoring service can help you keep track of your credit report and alert you to any changes or suspicious activity. This can help you catch errors or fraud early on and take action to protect your credit.

The Bottom Line

The information inside your credit report affects how your credit score is calculated, as well as how banks and other types of lenders view you as a borrower. For this reason, it’s very important to regularly review your credit report to ensure that the information it contains is accurate and up to date.

This is where consulting a credit repair or restoration company comes in. Credit restoration refers to the process of correcting or removing negative information from your credit report. Call us at 888-799-7267 to schedule a Free Credit Consultation.