Credit Reports

Do you know whether or not you are a "good" credit risk? Most lenders use the information in a credit report to evaluate your history of timely payments and how responsibly you've managed credit in the past. Your credit history is maintained by a reporting agency, which is a company that gathers, files and sells information to creditors and/or employers to facilitate their decisions to extend credit or employment.

Most negative credit information remains on file for seven years (10 years for bankruptcy information) and can greatly influence the options and opportunities available to you in life. Even though you may not need credit today, by thinking ahead, you can establish a solid credit history for when you need it in the future.

What is in your credit report?

• Personal information
• Payment history
• Inquiries into your credit history
• Any bankruptcies, lawsuits, and liens

Remember that bill you decided to ignore?... yes, that's on there too. Your credit history can contain an accounting of how well you pay off your rent, utilities and loan payments, and how well you manage your bank accounts. It's also a great way to confirm that any accounts you closed are really closed.

So how can you tell if you have good credit?

The National Foundation for Consumer Credit (NFCC) suggests you check your credit history at least once a year. You can order your credit report from Equifax to see your credit history online.

Keep track of your financial record. When you get your report, if you see anything wrong, call the credit bureau immediately for more information.