Why These Four Things Not Found on Your Credit Report Matter

credit report

If you are familiar with the world of credit, then you probably know just how important your credit report and score can be. In many cases, a good credit history can be the key to unlocking a better lifestyle; conversely, a poor credit score can hinder you in many ways.

A great deal of information about a person can be found just by checking their credit history. However, there is a significant amount of information NOT found on your credit report. Many times, these things not reported to credit bureaus still matter — and can have a significant impact on your life.

Bank account history

Most of us, at one time or another, have faced an extremely low or overdrawn bank account balance. If you are the type of person who always has at least some money in their bank account and rarely, if ever, gets overdrawn, then you are in good shape. However, if you are routinely overdrawn and not in good standing with your bank, then you may be disappointed to learn that this can have an effect on your ability to open bank accounts in the future.

Banks use a system similar to the credit reporting system to determine how likely you are to become delinquent in your credit account. This is known as ChexSystems. Banks share information about you with one another, and if you have had problems at a bank in the past, this may come back to haunt you. While your checking or savings account history may not be reported to credit bureaus (except in cases of severe delinquency), it will most likely be reported to ChexSystems. Having a poor history with your bank may hinder you from being allowed to open accounts in the future.

Rental history

Renters, beware: falling behind on your rent can have a devastating effect on your ability to rent in the future. When you apply to rent an apartment, condo, or house, your rental history is required information. Most landlords or property management companies require at least three years of rental history when you apply. It is not a good idea to leave anything out either. Your credit check will contain information about past addresses, so your potential landlord could find out if you “forget” some of your rental history.

Utility payments

It is not uncommon to send in a utility payment a few days late once in a while, but be cautious in doing so, especially if you plan to move or switch to a new utility company in the near future. Utility payments are not generally found on credit reports, except in cases of severe delinquency. However, it is still important to pay them on time and in full when possible. A checkered utility past can make moving difficult. If, in the past, you have defaulted on utility payments, resulting in action such as a shutoff, the company may not be willing to work with you, or may require a large deposit in order to turn on service at a new address. Additionally, many utility companies will check your credit to determine if a deposit is needed.

Criminal records

Perhaps the most important thing on this list, your criminal record could potentially impact your entire life. While it will not show up on your credit report, it will have a direct effect on where you can live, where you can work, and even who you can be around. Having a clean criminal record and minimal run-ins with the law will serve you well in every area of your life.

While your credit report will not hold every important piece of information about you, it is still important to make sure your accounts are in good standing, and keep negative items off your credit report. If you need credit repair services due to inaccurate, unfair, and unverified negative accounts, contact the experts at Lexington Law to learn more about how to get your credit back on track.

 

 

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