What Is Considered Good Credit?

Good credit is the totality of the performance of each piece of criteria rated on your credit report

. Many people think that absolutely everything is reported to your credit report including utility bills. Your credit report is made up of 5 main sections:

1.Personal Information

2.Inquiries

3.Public Records - Liens/Judgments/Bankruptcies/Collection Items

4.Employment history

5.Trade Lines

Your personal information includes your full name, date of birth, social insurance number, the date you began having a credit report, your spouses first name, any aliases and the 3 most recent addresses reported to the credit report. This information assesses your stability by looking at how long you have had a credit report and how long you have maintained the same address.

Inquiries represent all of the times you have applied for credit. Pay attention when signing contracts with companies because some will include clauses so that allow the company to pull your credit report in the future to qualify you for products and services. Too many inquiries will reduce your credit rating.

Public Records list any liens on vehicles or property you have leased or financed any bankruptcies, collection items or judgments. Bankruptcies, collection items, and judgments will reduce your credit rating.

Employment History lists the last 3 employers reported to your credit report.

Trade Lines represent your credit products. Each will list the creditor, when the account was opened, the credit limit, the balance, the monthly payments, the repayment terms, type of credit, current account standing, account history, months reported to the credit report and more

How does this information get reported to your credit report? Well information like your address, employment, aliases and other personal information is reported from the information you provide creditors when you make an application. When the creditor makes the credit inquiry to request your credit report they have to enter the information you provided in your application and then that information updates to your credit report.

by: Courtney Jewell-McElroy

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