Whenever you apply for a credit card or a loan, the first thing your card issuers or money lenders look for is your credit report. A credit report is a document prepared by any of the major credit bureaus showing your credit history. It contains all information about your payment behavior, your loans, credit cards, etc. But, there are still a few things that no one can find in your credit report. Do you know what are those? If not, this article is here with a list of things that are not mentioned in your credit report.
What Is The Importance of Your Credit Report?
Your credit report is a summary of how well you can manage your credit card accounts or loans. It contains all the information about your past loans, credit cards, etc, and helps the card issuers and money lenders in deciding whether they should approve your loan/credit card application or not. Moreover, your credit score is also determined by your credit report that is prepared by the credit bureaus. However, your credit reports prepared by all the four major credit bureaus can be different as not all card issuers/money lenders provide your information to all three.
Your credit report doesn’t only need to be checked by the money lenders but by you as well. It is advisable to check your credit reports regularly to avoid putting your financial health at risk. You should read your credit reports and understand them so that you can use your credit knowledge to gain an excellent credit score.
11 Things You Won’t Find In Your Credit Report
Financial Information Other Than Loans/Credit Cards
Your credit report will only contain the financial information that is related to debt and not other than that. The information like your savings, investments, account balance, transactions made by you, etc will not show up in your credit report. But, any type of loans you have taken or credit cards, etc will be mentioned in it.
Employment & Income
Your credit report doesn’t contain any information about your current employment status and your salary. However, the name of your previous and current employer can be mentioned in it if you provided it while filling any application form for loans/credit cards. So, it is impossible for card issuers, money lenders, or anyone checking your credit report, to get an idea about your exact salary. It’s just your past payment behavior that helps them understand how creditworthy you are until they ask you about your salary.
The loans you have taken from any private money lender or from any shop will not show up in your credit report and it will not at all affect your credit score. Only the loans made with banks or authorized financial institutions and credit cards will be mentioned in your credit report.
Utility bills, such as electricity bills, water bills, social maintenance bills, etc will not be there in your credit report even if you pay them using net banking with your credit card. The card issuers/money lenders have nothing to do with your utility bills but with your repayment behavior.
Irrelevant Personal Information
Your credit report only contains the personal information that is necessary like your name, current & permanent addresses, mobile number, date of birth, etc. Nothing about your marital status, liabilities, religious or political affiliations will not be mentioned in it.
Credit Information of Your Spouse
Nothing about the credit history or payment behavior is mentioned in your credit report, even if you have a joint account with them. Your credit report only contains information about you & your credit history and not about anything related to your spouse’s credit journey. But, better is that both of you maintain a good credit score in order to be approved for any loans without any difficulties.
Reasons for early/late settlement
In case you settle your outstanding loans or credit card dues before the due date, the credit report will never show the reasons for clearing the due early. Also, if you forget to make payment on time, the credit report then also will not mention the reason for the non-payment of dues.
Credit utilization ratio
Credit utilization can affect your credit score negatively and positively. The credit utilization ratio is the difference between the credit limit and credit usage. It is advisable to keep a high ratio to maintain a good credit score. A credit utilization ratio upto 30% is considered to be an ideal ratio.
List of Defaulters
The credit report only shows your credit score and not how many times you have defaulted in the payment of a loan or credit card bill. There is no defaulter’s list as such where your name will be shown. On defaulting the repayment of a loan or bill will only affect your credit score negatively which will make it difficult for you to borrow funds from the bank in the future.
Status and analysis of Credit approvals
Your credit report will never show your credit approval status and analysis. The report is not concerned with whether your application for credit card/loans got approved or not. It is also not concerned with how many times your application got scrutinized or enquired. The credit report will never reflect such information.
Data related to Savings and investment
The credit report does not contain the information related to your savings and investment data. The savings or investment activities do not affect your credit score as they are a mere representation of your financial position. Your credit report is solely based on the activities conducted through your current accounts, credit card account, fixed deposits, etc.
Now, you might have understood what details are mentioned in your credit report and what are not. Only the information that can help the card issuers understand your financial behavior is mentioned in your credit report. In order to achieve a good credit score, it is important for you to keep checking your credit report regularly so that you can understand how you can improve your credit score. It is best to keep an eye on your credit report and review it after every 3 months. This will help you in tracking any fraudulent activity which is not in your knowledge. You can easily access your credit report from your home using different credit rating agencies like CIBIL, Experian, etc.
Additional reading: How to Dispute And Fix Credit Report Errors