Your credit report says a lot about how you have been in terms of paying your debts. It is one of the most important things that determine not only whether you will receive further credit from lenders but also is responsible for getting you good interest rate offers. You might have also heard several variants of your credit score, namely Experian Credit Score or CIBIL score but actually, they all have the same concept. Having said that, credit reports do not show everything. Including a few things that you might think it does.
Related Article: Understanding Credit Report: Everything You Need To Know
Don’t get this wrong. You income details are essential when you apply for any type of credit. It is just that your credit score is not affected by that number.
All closed accounts fall out of your credit report after a few years. So the account that you had closed thinking that ending on a good note got you a medal for life? It might not exist in your credit sheet at all.
You were the star employee last month? Doesn’t matter. You are jobless right now. Credit score couldn’t care less. Of course, being jobless would not get you credit anywhere. But it certainly won’t show up on your credit report.
All this time that you had been paying your utility bills diligently. We are sorry to break it to you but yo paying your bills is one of the things that don’t show up on your credit report.
Disclaimer: We are not encouraging you to indulge in criminal activities. If you were implied into a criminal case of might have some sort of criminal record. Don’t worry, it won’t ruin your credit rating.
Yes, your credit report consists of your debts. No, it does not include non-traditional loans. If you have ever been to a pawn shop and got money from there, there is no trace of that loan on your credit report.
Paying your taxes on time is a good thing. Shows that you are financially responsible. Also, you are helping the government out by not being a defaulter. But sadly, this won’t win any laurels on the credit exam.
So these were the things that don’t show up on your credit report. But that does not mean that you stop being careful with your payments or paying taxes. Did you know that checking your credit score also does not have any negative impact? Get your free credit report now. Until next time!