Account History
Depending on the length of your credit history, this section can be pretty long, but it’s also extremely important. Don’t let the length deter you from reviewing these entries with a fine-tooth comb.
Why? Your account history shows years of individual payments you’ve made month by month on each of your credit accounts, from loans to credit cards. And your payment history accounts for 35% of your credit score, which is the largest contributing factor. It’s crucial that you perform your due diligence and make sure everything is accurate in this section.
Here’s exactly what you’ll find under your account history section. Again, the details may vary among the three credit bureaus, but the general idea is the same for each one.
First, you’ll see an entry for each of your current open accounts. Perhaps the most important piece of information here is the current status. Ideally, you’ll want the status to be “Pays As Agreed” because it means that you’re up to date on all of your payments. However, depending on your payment history, you might see codes indicating any of the following:
- the account is now current but was 30, 60, 90, or 120 days late at some point
- the account is now current but was previously in collections
- it’s currently in collections
- it had a paid collection
- or it is a charged off account
There are many other possibilities, so look for a chart with explanations of the code given if you’re not sure what your specific status indicates.
Under each account, you’ll also see an overview with information such as the type of account, the highest level of credit you’ve had, term duration, date opened, current balance, scheduled payment amount, and your actual payment amount.
From there, you’ll see a month-by-month listing of your payments on the loan or credit card. After you get through all of your open accounts, you’ll also see a similar listing for each of your closed accounts.
Credit Inquiries
A credit inquiry refers to an entry on your report indicating you have applied for new credit, insurance, or financing. Each of these actions triggers a company to pull your credit and your score then dips a few points every time.
If you just have one or two listed, this obviously isn’t going to have a major effect on your credit score. If you have several inquiries listed, however, the damage could really start to add up. Plus, you might scare off potential lenders by making it look like you’re scrambling for credit. So it’s wise to be careful with the amount of credit card and loan applications you submit.
Inquiries only stay on your report for two years and luckily, they only impact your credit score for one year. Still, check for accuracy in this section. In the instance you find an inquiry for a loan product you don’t remember applying for, you can lobby to have the item removed from your report.
Consumer Statement
You should recognize any information contained in the consumer statement section because it comes directly from you. Whenever you file a dispute with one of the credit bureaus and the subsequent investigation doesn’t resolve anything, you may submit a statement explaining your side of the situation.
Typically you’re allowed 100 words. This gives you the chance to provide lenders with more information; however, make sure not to overdo it with consumer statements. Too many can raise a red flag even if you feel like the case (or cases) didn’t end fairly.
Public Records
The public records section deals with any judgments, tax liens, bankruptcies, or other public records available about you at the county, state, and federal levels. You’re likely to be very familiar with these particulars because they often involve court appearances, lawyers, paperwork, bureaucracy, and other headaches.
Any of these items will have an enormous impact on your credit score and stay on your report for seven years or more. Make sure that all the information here is correct, otherwise, you’ll have unnecessary damage done to your credit.
