What The Hidden History Inside Your Credit Report Means For You

On its surface, your credit score seems simple enough to understand. It’s that three-digit number that can mean the difference between getting favorable terms on car loans and mortgages or successfully applying for a credit card. But that three-digit number didn’t form in a vacuum. There’s a whole history behind it.

You know that your credit score reflects information in your credit report, and that your credit report collects information about your borrowing and payment history. What you may not know is that your credit report can also contain elements you’ve long forgotten about: accounts you opened years ago, addresses you no longer live at, records of missed payments, employment information and inquiries from companies that checked your credit.

Some of this information can be easy to overlook. Some of it may be outdated or outright wrong.

Even if you’re not borrowing money anytime soon, you want an accurate credit report ready for when you do. It’s time to investigate the hidden history of your credit score.

Your Old Addresses Can Stick Around

When’s the last time you honestly thought about that apartment you lived in five years ago? Maybe during a nightmare about how your downstairs neighbor turned their living room into a dance hall for bad music. Still, your credit report remembers, so you might see addresses from previous apartments, houses or other places where you once received mail.

Generally, old addresses don’t impact your credit score by themselves. However, they’re still identifying information connected to your credit file. So, if you see an unfamiliar address, don’t dismiss it as a harmless mistake. It could be a simple reporting error, but it could also be a sign that something else is wrong with your file, like potential fraud.

If you see an unfamiliar address, don’t dismiss it as a harmless mistake.

Start by reviewing the personal information section of each report from TransUnion, Experian and Equifax. If you find an address you’ve never used, contact the credit bureau reporting it and have the inaccurate information corrected. 

Closed Accounts Don’t Necessarily Disappear Immediately

You want to do a victory lap whenever you close a credit card, but you might not have left that card in the dust behind you. Here’s what you might not know: Closing a credit card doesn’t mean its entire history vanishes from your credit report right away.

According to Experian, closed accounts can remain on your credit report for anywhere from two to 10 years, depending on the circumstances. Before you hyperventilate into a paper bag, remember that the impact of an account on your credit score changes over time. Positive information, such as an account closed in good standing, can remain on your report for years.

Still, holding a magnifying glass over closed accounts is important because you might see an unfamiliar creditor, balance or payment status.

Don’t dispute an account simply because it’s old or closed. Instead, check whether the information is accurate. If you find an error, dispute the specific information with the credit bureau reporting it.

Your Employment History May Be There, Too

Your credit report isn’t necessarily limited to your accounts and debts. You may also find employment information, such as the names of current or previous employers.

Don’t worry, your credit report doesn’t function like a shadow version of your LinkedIn page. Your employment history, including your salary or even periods of unemployment, isn’t used to calculate your FICO score. Still, it can be jarring to see information about your work history in a document you probably think of as a record of your debts. Why is it even there? 

The explanation is simple and it’ll hopefully put your mind at ease: When you’ve applied for a loan or credit card in the past, the lender might’ve asked for your employer’s name or other employment information. The lender could’ve passed that data along to a credit bureau as part of the process. Not every lender does, though, so don’t be alarmed if your employment information appears incomplete. 

When you’re reviewing the identifying information on your credit reports, look closely at any employment information listed. See something that’s inaccurate or doesn’t belong to you? You know the drill: contact the credit bureau reporting it and ask about correcting it.

Medical Debt Has a Complicated Place on Your Credit Report

Medical debt is all too common for many Americans and it doesn’t follow one simple rule on your credit report. Knowing more about what does and doesn’t get reported can keep you from making assumptions that hurt you.

The three major credit bureaus have changed how they handle medical collections over time, and certain medical debt may be excluded from credit reports. So you shouldn’t assume that every unpaid medical bill will automatically appear on your credit report. But don’t dismiss the chance that medical debt could pop up on your report, either. 

Seems confusing? Here’s how to make it easier. Scan the details of any medical collection on your report with a few questions in mind. Is the debt actually yours? Is the amount correct? Has it already been paid?

To verify the debt, request an itemized bill from your medical provider or collection agency and compare it with the information on your credit report. If the debt doesn’t belong to you or the information is inaccurate, dispute it with the documentation you now have on-hand.

How to Get Your Credit Report and Dispute Errors

By now, you’ve likely noticed a pattern of advice: Play detective with your credit report and then, like any good gumshoe, report any errors to the appropriate credit bureau. OK, but how exactly do you go about this?

The Federal Trade Commission encourages consumers to get a free credit report from each of the three major credit bureaus through AnnualCreditReport.com. Ideally, all the information in your report is accurate. But if that hidden history has some not-so-hidden errors, you have recourse.

The FTC recommended finding the dispute form on the credit bureau’s website or using the mailing address listed on your credit report. You’ll want to identify the information you’re disputing, explain why it’s incorrect and include copies of documents supporting your claim.

If writing a dispute letter sounds daunting, don’t worry. The FTC website offers a template and instructions for what to include.

Don’t rest on your laurels once the dispute has been investigated. Make sure the correction actually appears on your credit report before you consider yourself done.

Make sure the correction actually appears on your credit report before you consider yourself done.

When to Consider a Credit Repair Company 

Sometimes, reviewing your credit report can feel overwhelming. Parsing through your own hidden history, identifying what seems wrong and learning how to dispute it isn’t always the easiest task.

Fortunately, you don’t have to go it alone. Credit repair companies, such as Sky Blue Credit, can lend you a hand by identifying potential errors in your credit report and managing the dispute process on your behalf. Credit repair companies may also offer ongoing credit monitoring and other services designed to help you keep track of your credit.

If you don’t like what you see in your credit report, a credit repair company may provide support as you work to improve your credit. But not all credit repair companies are created equally, and the right one for you will ideally provide personalized support based on your goals and credit history.

That said, there are a few things to be aware of before going with a credit repair company. Reputable companies won’t ask for payment before providing services or make bold claims about removing accurate negative information from your credit report.

Finding a credit repair company you trust could make a huge difference in helping you navigate the dispute process and stay on top of your credit.

The Bottom Line

Though you’ve been told to check your credit before applying for a new credit card, a loan or even an apartment, you’d be wise to play Sherlock Holmes with your credit report more frequently. Combing through the hidden history inside your credit report can help you correct inaccurate information or, in a worst-case scenario, spot signs of potential fraud.

The better you understand what’s behind your credit score, the better equipped you are to build credit and use it responsibly. Knowing what’s really in your report can help protect the good credit you’ve worked so hard to establish. 

Knowing what’s really in your report can help protect the good credit you’ve worked so hard to establish.