Accounts

• One of the first components of a credit report is your account history. This indicates the number of credit based accounts you have in your name, both opened and closed. It also indicates whether these accounts are installment based credit, like a car loan or revolving credit, like a credit card. This section also indicates how many inquiries have been made into your credit history.
  
  

Account History

• After listing the amount and types of accounts you have in your name, your credit history lists your account history. In this section, each account's specific information is listed. Information included will include open and closing date, amount of credit extended, missed or late payments or a negative credit history associated with that account.
  
  

Consequences Listing

• Another component of your credit history is what actions may have been taken against you in order to attain payment on a debt. For example, any credit agency involvement, wage garnishment, lien against property or other punitive measures.
  
  

What the Information Means

• The information in your credit history is interpreted in several ways. First, inquirers will consider any negative credit history. If you were late on payments, missed them altogether or were sent to collections, this reflects poorly on your ability and reliability when it comes to making payments on a debt in a timely fashion. Second, inquirers will consider the amount of credit history you have. Individuals with no credit history at all are considered a lending risk, as there is no way to predict how reliable they will be with making payments. This can result in lower levels of credit being extended to you. Conversely, individuals with dozens of open lines of credit or high levels of debt in comparison to available credit will also be penalized, as it indicates a potential to overspend. Finally, inquirers will contemplate the kinds of credit history you have. Installment credit history, like the kind you gain with a mortgage or car payment, is generally favored. If you have revolving credit, like credit card accounts, it isn't necessarily a bad thing, but too much of it can make you a risk, as high amounts of debt can be incurred quickly with that kind of credit.
  
  

How You Can Change It

• If your credit history is unfavorable, you have two options. First, you can challenge the information in your report. If any of the reports listed are inaccurate, the bottom of a credit report will list any steps you can take to challenge the report. Federal law dictates that the credit agencies have 30 days to respond to your filing. However, if the information is found to be accurate, there is nothing you can do. Your credit information stays in your formal credit history for seven years. Bankruptcies stay on your record for ten years. For this reason, the best solution is often time and responsible financial habits.