A snapshot of your financial life is your credit report. It lists your current credit accounts, how your debts are handled, and how frequently credit inquiries are made. When approving your loan or credit card request, it provides lenders an insight into your borrowing potential and creditworthiness. Your report, though, includes a lot of financial details, but there are some pieces of data that you won’t find on your credit reports.
- Savings and investment data: No information relating to any of your savings or investment accounts operated by any financial institution is included in your credit report. It does not disclose transactions carried out across these accounts, and your credit score is not affected. This provides descriptions of your accounts with fixed deposits, current accounts, and trading accounts. Your sources of savings and revenue are indicative of your financial condition. Your credit score is just about your credit status and background.
- Utility bills: Your credit report will not include any information on the payment or non-payment of your utility bills, such as energy bills, telephone bills, etc. And if you use your online banking service or your bank account to make these bill payments, they will not show up on your credit report.
- Spouse’s credit information: Your spouse’s credit information is also not a part of your credit report. Only your credit information is expressed on your credit report regardless of whether you are married or not. And if you have a joint account or a joint loan, regardless of your relationship with them, the report will have your information.
- Your employment status: There will be no details relevant to your job on your credit report. However, if you listed them at the time you applied for some credit, the report might include the names of your current or former employer. The period of your employment will not be included in this detail.
- Your Income: There will also be no detail about your wages or earnings in your credit report. Only your credit background and related information, such as your repayment conduct, will be reflected in the credit report. It will not have any information on your earning capacity, net worth, or sales.
- Your credit utilization ratio: This is the combination between your credit cap and the use of credit. This ratio does not mean your credit report. But based on the details contained in your credit report, banks will determine this. Your credit score is both affected by overuse and underuse of credit. Your credit report will not note the degree to which credit is underused or overused. Banks normally aim for a loan utilization level of less than 30 percent.
- Non-traditional financial loans: Non-traditional financial loans are known to be loans that are not obtained from a bank or financial institution. On your credit report, loans from pawn shops or private money lenders will not be reflected.
- Interest rates of other loans: Your report will not be valid for the interest you pay on loans already taken, credit cards, etc. As long as it is repaid on time, the cost at which you have taken out the loan is immaterial.
- Reason for settlements: Settlements can be shown on your credit report, but not the reasons for those settlements. In certain situations, actual circumstances could have forced you to settle an account, such as, due to some medical emergency, you could not make timely payments or your card was used fraudulently. However, if they have found settlements in your report and posed this as an obstacle to your credit approval process, these instances can only be explained to inquiring entities.
- Monthly payment history beyond 3 years: In the study, monthly payments are reported for a maximum of 3 years prior to any recent payment. It is important to note that your credit information report will not reflect purchases made before this time. To keep track of your payment history and notice any inconsistencies at the earliest, it is recommended to review your report regularly, i.e. 3-4 times a year.
So, these are some of the items on your credit report that don’t show up. But that doesn’t mean you stop being vigilant about your payments or stop regularly checking your credit report. This will help you quickly take advantage of the credit.