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Credit reports are one of the most confusing parts of personal finance. People tend to be confused about how they work and how they can affect your finances. One of the most common mistakes people make about credit reports is assuming that all financial information is included on the reports. Typically, only financial information pertaining to loans and credit cards are listed on your credit report, as well as any accounts that have gone to collections. Otherwise, all of your other financial information is safe. Here is a list of things you won’t find on your credit report:
Your Banking Information: Regardless if you have $2 or $2 million in your savings account, your credit report will never list it. Your checking, savings and other banking accounts, including investments, will not be listed on your credit report. Only loans (such as mortgages, student loans, auto loans, etc.) and credit cards are generally listed on your credit report.
Your Personal Information: Worried your age might affect your credit? Luckily, it is not listed on your credit report. Neither is your race, sex, religion or marital status. All of your personal information is kept confidential, as it generally has no bearing on your credit worthiness. It also ensures that your credit score cannot be based on personal factors.
Your Employment Information: If you were recently fired and worried that it might hurt your credit, fear not. Employment information is not listed on your credit report. In addition, your salary is not listed on your credit report either. Whether you have been unemployed all your life or have a great job that pays well, it doesn’t matter to the credit bureaus. It’s also a plus because a layoff or break from work cannot affect your credit score.
Credit Repair Activity: If you are trying to fix your credit score, and you — or a credit repair company — dispute items on your credit report, you may wonder if negative items that are “removed” from your report end up staying on your report after all. This is because some items that are initially removed may appear back on your credit report, if the credit bureaus can validate that the item is legitimate. If the item is not legitimate or has no proof of being legitimate, it will remain removed from your credit report.
Your Interest Rates: If you are being charged crazy interest rates from your credit cards because you don’t have the best credit, these will not be listed on your credit report. Interest rates from credit cards, mortgages or other loans are not listed on your credit report. In addition, your interest rates, no matter how good or bad, cannot be a factor in determining your credit score.
Rentals and Utility Information: In most cases, landlords and utility companies do not report to the credit bureaus, which means those accounts will not be listed on your credit report. However, if you fail to pay your landlord or utilities, those companies can send your account to a collections agency, and the collections agency can report the delinquent account to the credit bureaus. So make sure you are always paying your rent and utilities on time.
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