We’ve all requested and reviewed our credit reports and we’re all generally familiar
with what type of information is contained. But, have you ever given any thought as
to how that information gets on your credit files? There are three primary sections of
information on your credit reports; personal information, public records and account
information (collections and credit accounts). Each of these sections are populated
different ways. They are…
Personal Information – This section includes your name, addresses, date of birth,
Social Security Number and employment. The first lender you applied for credit with
caused the creation of your credit file and originally populated the information in this
section. And, over the years as you have applied for more credit, this section has
evolved with new addresses, different variations of your name and new employment
Public Records – There are only three types of public records that make it to your credit
files; judgments, tax liens and bankruptcies. These records are not sent to the credit
bureaus by the courthouses where they reside. They are proactively picked up and then
reported by the credit reporting agencies. In fact, public record information is the only
data the credit bureaus go out and get for the sake of reporting.
Account and Collection Information – For the sake of this article we’ll include 3rd
party collections and account information, or trade, as one. Normally collections and
account information are maintained in two separate sections of the credit report but
since the data makes it to your credit files the same way it makes sense to combine
them. Collection agencies and your lenders proactively send their information to the
credit reporting agencies, normally once a month. The newer reporting will overlay or
replace the previous month’s reporting thus leaving a newly updated account in its place.
Michael B. Citron is an internationally known public speaker and author. He lectures for professional associations worldwide. Michael is a serial entrepreneur who is dedicated to living the American dream, and helping others to do the same. His role at DisputeSuite.com has placed him in the spotlight of the credit repair industry. DisputeSuite is the largest provider of technology and education services to the industry, and has been a catalyst in the forward movement to standardize the credit repair industry.