Vantage Debt Management gets hundreds of inquiries each month regarding credit bureau and credit report listings. Consumers are convinced that the credit bureau is the one that blacklists them and limits their credit options.
The truth is that the credit bureaus are merely information holders. Credit and service providers use the information on the credit report to determine whether they will offer the consumer their products or not.
Credit Bureaus Store Credit History Information
The role of a credit bureau is to store a consumers key credit information, usually for period of 24 months. The bureau gets sent monthly updates from credit and service providers.
Credit bureaus provide a snapshot a consumers current credit profile. Information on the credit report includes:
- Personal Information – Full name, address, occupation, contact numbers
- Debt information – current and previous loans, credit cards, vehicle finance etc.
- Payments history – details of the consumers payment status, recorded for up to 24 months
- Service agreements – cellphone contacts, insurance contracts etc.
- Enquiries – a list of institutions that recently viewed the consumers credit report
- Judgments/defaults/summons – any legal action that has commenced due to contract breaches, usually due to missed payments
- Process information – is the consumer currently under debt counselling or administration
- Fraud information and warnings
What Goes Into A Credit Score?
The credit bureaus use the above information to provide a credit score. Each bureau has a unique scoring method and they each have different scales. This means that credit scores between the various bureaus cannot be compared.
Your credit score is used by providers to determine whether they will assist you or not, based on their risk appetite. There are many factors that go into the credit score calculations, but below are the main factors:
- Payment History
- Debt Utilization
- Credit Access History
- Total Number Of Accounts
- Total Debt Outstanding
- Number Of Inquiries
Why Has The Credit Bureau Listed You?
The truth is that the credit bureau does not “list” any consumer specifically. They also do not blacklist anyone. When consumers are denied a financial product such as a loan, they often think it is the bureau that has caused this denial.
If you are trying to get a loan and keep getting rejected it is probably due to a low credit score. This is commonly known as being blacklisted.
How Can I Improve My Credit Status?
The quickest way to improve one’s credit score is to get all accounts up to date. Once all arrears have been settled you will needs to continue paying full installments on time each month going forward. Continuous payment improves credit score and payment history.
If there are any negative judgments or defaults on your credit report, you need to settle these and make sure they get removed from your credit profile. These carry a large weighting and may be dragging down your credit score.