A person's credit history is reported by the three major repositories:  Equifax, Trans Union, and Experian (TRW)


It contains: credit accounts, public records, inquiries


It does NOT contain: race, religion, personal assets, medical or criminal records

How long does the information stay? According to the Fair Credit Reporting Act:


  • Inquiries: 2 years, impact up to 1 year, 90 days from mortgage credit report
  • 7 years: collections, judgments, liens, charge-offs, foreclosures, payment history
  • 10 years: bankrupcies from date of filing
  • Open accounts in good standing: forever

•Credit History 15%
–Time since opened
–Specific accounts
–Average age
–Avoid credit surfing


What's credit scoring?

•Pattern of credit use (New accounts, Inquiries) 15%
–How many new vs. total
–Mortgage & auto excepted


It's calculated by statistical models that assign points to factors indicative of repayment, like the probability of delinquency in 24 months. It's objective, not judgemental.


It requires one account over six months and one account updated in the past six months.

•Payment History 35%
–Credit accounts
–Public records
–Recency
–Frequency
–Severity

How is credit score calculated?

Don't know much about credit? Here's a quick run-down.

•Types of accounts 10%
–Finance company score lower than banks and retailers


What's in a credit report?

Credit Basics

Platinum Realty Group and Finance Inc.