Introduction
What is a Credit Card Report?
A credit report is an accumulation of facts on how you repay your loans and bills, your amount of debts in each month, balance of credit unutilized, and other necessary information so that a potential lender can decide on your quality as a borrower, whether you are a bad credit risk or a good credit risk to them. The credit cards reports do not tell them whether you are really a bad or good borrower but give them certain information and data on which they themselves can decide upon. The credit cards reports are prepared by Credit Reporting Agencies or CRA by collecting information on you from your previous lenders, merchants you have dealt with, or landlords, etc. The following items are never included in your credit cards reports:
- Income
- Bank account balances
- Driving records
- Religion and Race
- Health (although outstanding medical expenses may be included as debts)
- Criminal records
History
Who have access to your Credit Card Report?
Fair Credit Reporting Act says that credit cards reports on your credit record are confidential and can be revealed only to the entities:
- The government agencies considering offering you benefits or reviewing your financial status
- Your potential lender to whom you have applied for loan or an existing lender desirous to know your current financial status
- Your existing or potential employer who is considering you for promotion, reassignment, or employment
- Your insurer for renewal of an existing policy or a potential insurer to whom you have applied for a new policy
- Any other persons who has some legitimate purpose to know about your credit past
Features
Facts for Inclusion—How long?
The Fair Credit Reporting Act has some established guidelines on credit cards reports. These guidelines are based on the type of credit account you have. Some of the account types like Collection Account or Paid off Loans mostly do not remain more than 7 years on your credit record. There are some Special Credit Reporting rules on court judgments or tax liens or bankruptcies that remain in your credit record alive for a longer period. The lien on Tax dues remain in your credit cards report indefinitely, whereas the court judgments remain alive for 7 years or more depending upon the rules prevailing in your state, whichever is longer. Bankruptcy will remain alive in your credit cards record for 10 years. Once you clear your tax dues, tax lien will be removed from your credit record after 7 years.
How long does information about credit cards remain on your credit report depends upon the status of your credit card. If you are using your credit card regularly, the Credit Rating Agency will keep regular update of your transaction and keep the earlier records alive. But, when you have closed your account the maximum 7 year period kicks in.
If you have stopped paying your dues, the default will be added in your credit scorebook with a negative score from the expiry of 180 days from the date of stopped payment. The case of default will remain there for the next seven years.
Tips and comments
The article can be concluded by saying that how long an information will remain a subject to be included in your credit cards report is governed by the Fair Credit Reporting Act, but how long your lenders will consider such information valuable—that is another story; it depends on the institution that uses it and the purpose of its use.
