AIE — Adventures In Education

College Students

Credit Scores and Reports

Think of a credit report as your financial report card.

Just like a report card or resume, a credit report is used to gauge an individual's financial performance. It is a summary of your credit history based on information from banks, merchants, and other creditors.

What's in a credit report?

A credit report contains the following information:

Your personal information (i.e., name, SSN, birth date, address, employer)
Financial information (i.e., bank accounts, loans, credit cards, bankruptcies, taxes, and your payment history related to any of these items)

What factors influence my credit score?

Payment history
Outstanding debt
Length of credit history
Severity and frequency of negative credit information such as bankruptcies
The amount of credit used compared to the credit available

Correcting your credit report

If you see anything you don't recognize on your credit report, you should contact the credit bureau at once and call any creditors that filed complaints or incorrect information. Someone could be using your identity or credit illegally. Also, keep track of your efforts in writing.

What if you have bad credit?

Unfortunately, if you've collected a lot of debt, missed payments, or made late payments, there's no way to erase this information from your credit record. Any late payment can stay on your credit rating for up to seven years, even if you've completely paid off the creditor. You should establish a spending strategy and start paying off all your debts immediately. If you do, your credit rating will improve over time.