How Does your Credit Report Come Together?

October 10, 2012

Equifax explains how the Credit Report is madeWhile the Equifax Finance Blog shares wide-ranging information about personal finance advice, when most people think of Equifax, the first thing that comes to mind is a

credit report. But how does that credit report come to be? If you’ve ever wondered how it all comes together, the Equifax Finance Blog is ready to share all the nuts and bolts of a credit report in the new article, “

How Does Equifax Get the Information for My Credit Report?

The article explains how every time you do something impacting your credit, creditors send the information to Equifax and the other credit reporting agencies. From there, Equifax compiles this information into a report that keeps track of how good or bad of a borrower you are. Your credit report is being constantly updated, and is always changing with the times. Due to this constant update, things eventually become less relevant and fall off of your report. This is how you improve your score – by replacing old bad transactions with good ones, and when heavy items like foreclosures, bankruptcies and tax liens fall off, your score goes up higher.


FICO score is made up of five parts:

  • Your payment history (35 percent)
  • The amounts you owe (30 percent)
  • The types of credit you have (15 percent)
  • The number of new accounts and inquiries (10 percent to 12 percent)
  • The length of your credit history (5 percent to 7 percent)

As you can see, the items in your report plus various other qualifiers all play into it. Don’t forget to collect your free credit report each year, and it’s also a good idea to get your credit score when you do. Carefully check your reports to make sure that everything has been reported correctly.

For more great information on credit, from credit cards to financial histories, check the Equifax Finance Blog.

Categories: Economy, Education

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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