What’s Included in a Credit Report?

If your heading out to purchase your first car and your will be applying for auto credit, know that lenders will take a look at your credit report before making a decision.  If you’re not familiar with this financial document, here is a little background information.
There are four types of information contained within a consumer credit report: identifying information, credit information, public record information, and inquiries.  These categories outline specific details about you.

The identifying information will include name, current address, previous addresses, SS number, birth year, employment record and if married, the name of your spouse.
The section on credit information includes accounts or loans you have with banks, other lending institutions, retail outlets, charge card issuers, and any/all other lenders.
Public record information includes all information that’s available in state and county court records, such as bankruptcies, tax liens, and monetary judgments.
Inquiries reflect that you have applied for new credit.  This is viewed as an indication you may be taking on more debt.  Lenders will regard multiple recent inquiries as red flag that you could be compromising your debt to income ratio.
A credit report cannot by law relay other personal information such as religion, ethnic background, medical history, political preference or criminal record.
Positive credit information remains on your report for an indefinite period.  If no updates are made on an account for seven year, the details will be dropped from the report.  When you close an account, it also takes seven years for the information to disappear.
Seven remains the magic number for the negative information as well, though bankruptcies will show up for ten years.  Inquiries are the exception, remaining on the report for up to two years.

Many employers now also want to know the financial history of job candidates.  They are permitted to request an employment report.  This will include all the credit information, but will omit personal information such as age and marital status.
By federal law, businesses must meet certain requirements to access credit information.  That includes:  proof of purpose, current business license, and an executed contract that states data will be used according to guidelines.