Your credit report is an undoubtedly important thing that affects many aspects of your adult life. It is also one of the most widely misunderstood calculations out there. Understanding your credit score and what factors are considered in calculating you score is essential in maintaining a healthy credit report. One of the biggest confusions about your credit report is when some accounts do not appear on your report. Here is a guide to some instances when your credit report will omit certain accounts and why.
The Account is Old
If the account is old enough, it will not be shown on your credit report. The credit bureau sets something called a credit reporting time limit. After said time has past, if the account has been closed, it will no longer appear on your credit report.
- If the credit was left in poor standing (aka you didn’t pay your bill) it will come off of your credit report after 7 years.
- Some other accounts come off of your report after a 10 year period.
- If you closed the account in good standing, there is no formal law that says it has to be removed after any particular set amount of time.
The Company Doesn’t Report to That Specific Bureau
Something most consumers are unaware of is that there are 3 different credit bureaus that companies have the option to report to. Depending on the bureau that issues your credit report, you may have certain accounts that do not appear on your report because that account reports to a different bureau.
The Business Doesn’t Report At All
Not all businesses are required to report to a credit bureau. This could be the reason that it is not appearing on your credit report. Some common services that you may pay a monthly bill to that does not have to report to the credit bureau are:
- Utility services such as your water company, electricity supplier, or your heat.
- Cable companies do not have to report to the credit bureau.
- Phone companies are also exempt from the obligation to report.’
It is natural that one would expect to see these common services on their credit report, and for good reason as you typically pay these services monthly. Don’t be surprised if they do not appear on your report. It is important to note that if you are delinquent on these accounts they can still be reported in your credit report. So be sure to still keep up with your monthly payments, as the withholding from your credit report does not mean you are exempt of consequence.
You Pay Monthly Rent to a Small Landlord
Large apartment complexes or popular condo associations typically report to a credit bureau. But if you are renting from a smaller time landlord or lady, it is not uncommon to see this statement missing from your credit report. If you are you faithfully on time with your payments, as you should be, this may be a disappointing fact for you. Which brings us to our next point..
Your Report is Only Based On What’s Reported
This fact is both a blessing and a curse for some consumers. Unreported accounts do not affect your credit score, which is both a good and a bad thing. Bear in mind that if you are delinquent on any of your accounts, even if they do not typically report to a credit bureau, it will be reported on your credit report. If you have accounts such as utilities, or rent to a smaller landlord, they are not considered in your credit score. What’s unfortunate about this is that this is an easy way to maintain a healthy credit score. These accounts are due monthly and if you are always on time and pay the correct amount owed; it can be an easy way to maintain a healthy credit score.
- Give your accounts a call if you think something should have been reported.
- It may be an error in processing and if it can improve your score, there is no reason you wouldn’t want it to be taken into consideration.
So there you have it, your credit report simplified and broken down. The more educated you can be on the sources that affect your score, the better off you will be in keeping a healthy, low score. Remember to do your best to not spend beyond your means. Always budget your funds so that you have enough money to pay all of your monthly bills. This is a good way to maintain a healthy life style and exercise financial responsibility.
Still confused about how the whole thing works? Check out this user-friendly video link below for further information. Don’t forget that you can contact the credit bureau during working hours for any assistance or questions that you may have. Stay on top of your report and well informed to ensure no mistakes are falling into a high credit score.