Fix Bad Credit – Understanding What Isn’t in Your Credit Report!

If you want to fix bad credit, the first step is to get a copy of your credit report. Obviously there are many places you can get your report. For more information on getting your credit report, check out this post:

Credit Restoration

Many people are confused over what they will find in their credit report. While most everyone understands that their payment history will appear in their credit report, many people don’t understand that a great deal of your personal information ISN’T found in your credit report. Understanding what does not impact your credit score is key to learning how to fix bad credit.

Here is a list of things you won’t find in your credit report:

• Your Income – Your credit score is certainly impacted by having your credit cards maxed out, but owing more than you should based on your income does not impact your credit score. (Unless, of course, you start to miss payments!)
• Your Bank Balance – While having a healthy bank balance will certainly help out when it comes to applying for a loan, your bank balance is not reported to your credit file and as such has not impact on your overall credit score.
• Rental Payments and History – Unless your rental went into collections, then it is unlikely that the history would show in your credit file.
• Utilities Payments and Cell Phones – Utility and cell phone companies do not report your regular payments to the credit bureaus. The only way they will show up is if they have been charged off.
• Your race, color or religion
• “Soft” inquiries for things like employment or insurance. The only time inquiries show up on your report is when you apply for credit.
• Whether you pay child support or alimony – unless you have fallen behind on your payments
• Whether your receive public assistance

By the way, if you would like to learn more about how to fix bad credit, click HERE to get my FREE CD 7 Insider Secrets I Used to Take My Score from a 487 to a 787!