What information is included on my credit report?
How long do accounts remain on my credit report?
What's the worst thing that could appear on my credit report?
How do I build a good credit history?
How is the credit score calculated?
How do inquiries impact a credit score?
How does a lender decide that I am creditworthy?
How does a lender qualify me for credit?

What information is included on my credit report?
TransUnion, one of the three main credit bureaus, states that there are four primary categories of information contained in each type of credit report:

Identifying Information: Includes your name, current and previous address, Social Security number, telephone number, date of birth, and your current and previous employers
Credit History: Your credit history of paying bills with credit grantors, such as retailers, banks, finance companies and mortgage companies
Public Records: Items that may affect your creditworthiness, such as tax liens, court judgments and bankruptcies
Inquiries: Identifies the credit grantors and other authorized parties who have received your credit report. Inquiries also contain lists of the companies that receive your name and address information for the purpose of offering you credit
The report does NOT include:
- Checking or savings account information
- Medical histories
- Major purchases paid in full with cash or check
- Business accounts, unless you are personally liable for debt
- Credit scores
- Race, gender, religion or national origin

How long do accounts remain on my credit report?
In most cases, accounts that contain adverse information may remain on your credit report for up to seven years from the date of first delinquency on the account. If accounts do not contain adverse information, it is reported for 10 years from the last activity on the account.

Paid accounts generally remain on file for seven years from the date closed if they contain any adverse information, otherwise, they would remain on your file for 10 years from the date closed.

What's the worst thing that could appear on my credit report?
There are basically 10 things that look bad on your credit report. Here they are, listed from the least bad to the worst: Credit inquiries, credit rejections, late payments, past due and unpaid payments, court judgments, collections, loan defaults, repossession, foreclosure and bankruptcy.

How do I build a good credit history?
It is very difficult to obtain credit history overnight. One way to begin a good credit history is to start small by applying for a credit card with a low credit line or a small loan in a bank where you have a checking or savings account. Once you have some credit standing, exhibit responsible credit behavior.

How is the credit score calculated?
Credit scores are used to assess risk for different types of credit. It is calculated based on many factors of your credit history and payment behavior. These factors may include, but are not limited to:
- How you are paying your accounts
- How much money you currently owe
- How long your accounts have been open
- What different types of credit you use
- How much credit you use compared to the amount of credit you have available
- How often and how recently you have applied for credit

How do inquiries impact a credit score?
An inquiry is recorded on your credit report every time you, one of your creditors, or a potential creditor obtains a copy of your credit report. Typically, the presence of inquiries on your report has only a small impact on your credit score. Inquiries have less importance than delinquencies, balance owed, and the length of time you have used credit. It does not count as an inquiry if you receive an unsolicited credit promotion.

How does a lender decide that I am creditworthy?
When you apply for credit, the lender will get a credit report from a credit bureau. Lenders use this credit report to work a short-term debt-to-income ratio, where they calculate your present short-term payments (excluding your mortgage) and divide it by your total annual income. Typically, lenders look for this ratio to be less than 20%.

How does a lender qualify me for credit?
Most lenders look at the number of years you have worked at your present job, the kind of work you do, the number and nature of negative entries in your credit report, the amount of credit you currently have, savings or checking accounts with the lender and the length of time at your personal address, among others.