Your credit report, 3 bureaus, and score don’t contain your entire financial picture, though it does contain a big chunk of it. However, when creditors pull your report for lending decisions, there are some things they’re not going to see. Since credit scores are just a numerical representation of the credit report information, your scores are not influenced by these factors either.
Salary Information and Employment Status
Salary information used to be listed on credit reports, but that practice was abandoned in the 90′s. Collecting the information was rather speculative since it came from consumers, and there are far too many factors that can change a salary over the course of a year. In addition, salaries are not a measure of credit worthiness. They are a measure of an individual’s capacity to repay a loan. Employment status is also never listed on a credit report, although employment information such as last known employer, can be listed, depending on which of the 3 credit bureaus the report is pulled from. If you were laid off or fired from a job, that information will not be made available to prospective lenders.
Certain Criminal Activities
If you have a criminal record, for the most part, that information is not going to make its way on to your credit report. It has no bearing on whether or not you can repay your debts, so there is no need for it to be on your report. There are a few exceptions to this, however. Any liens – such as tax liens – that involve the court will show up as they are also public record, child support payments can show up as regular debt, and if you ever received a fine or ticket that went to collections, that will show up on your report, as well.
Your Net Worth
A credit report is essentially a list of your current and past debts, while a credit score is a numerical representation of that report. Your net worth is composed of assets you own outright, such as bank accounts, certificates of deposit, certain investments, and any property that does not have a lien against it. This information usually surprises people because most consumers believe that their net worth will make a lender more likely to lend to them. However, just as salary is not an indicator of credit worthiness, neither is your net worth. It is a tool to determine capacity. Credit reports, credit bureaus, and credit scores contain a lot of information about a person. It can often feel like your credit report is spying on you, and it can certainly make you nervous when applying for credit. However, there are pieces of your life that are not found in your credit report, and knowing this can both put your mind at ease, and help you better understand what a credit report does for you. Keep up with your credit worthiness through credit monitoring from CreditReport123 by visiting us at https://www.creditreport123.com/.