Your credit report is a snapshot of your financial life. It lists your current credit accounts, how you’re managing your debts, and how often you’re making credit inquiries. It gives lenders an insight into your borrowing capacity and creditworthiness while approving your loan or credit card application. However, your report contains lots of financial data, but there are certain pieces of information you won’t find on your credit reports.
Your credit report does not include information related to any of your savings or investment accounts held at any financial institution. It does not report on transactions conducted through these accounts and they do not affect your credit score. This includes information on your fixed deposit accounts, current accounts, and trading accounts. Your savings and income sources are representative of your financial position, your credit score is only concerned with your credit status and history.
Any details of the payment or non-payment of your utility bills such as electricity bills, telephone bills, etc will not be available on your credit report. Even if you use your online banking facility to make these bill payments through your bank account, they will not show up on your credit report.
Credit information of your spouse is also not a part of your credit report. Irrespective of whether you are married or not, only your credit information is reflected on your credit report. Even if you have a joint account or a joint loan, the report will have your details irrespective of your relationship with them.
Your credit report will not have any information related to your employment. However, the report may contain the names of your current or past employer, if you had mentioned them at the time of applying for any credit. This information will not include the duration of your employment.
Your credit report will also not contain any information about your salary or earnings. The credit report will reflect only your credit history and information related such as your repayment behaviour. It will not have any information regarding your earning capacity, net worth or income.
This is the ratio between your credit limit and credit usage. Your credit report does not indicate this ratio. But banks can calculate this based on the information provided in your credit report. Over Utilisation and underutilisation of credit both affect your credit score. Your credit report will not mention the extent by which you underutilized or over utilise credit. Banks generally look for a credit utilisation ratio of under 30%.
Loans that are not taken from a bank or financial institution are considered non-traditional financial loans. Loans from pawn shops or private money lenders will not be reflected on your credit report.
The interest you pay on the loans already taken, credit cards, etc will not be available on your report. The rate at which you have taken the loan is immaterial as long as it is repaid on time.
Your credit report will show settlements but not the reasons for those settlements. In many cases, genuine circumstances may have prompted you to settle an account, for instance, you could not make timely payments due to any medical emergency or your card was used fraudulently. However, these instances can only be explained to enquiring institutions once they have identified settlements in your report and raised this as an impediment to your credit approval process.
Monthly payments are recorded in the report for maximum up 3 years before you made any recent payment. It is important to understand that payment made before this period will not be indicated in your credit information report. It is recommended to check your report periodically i.e. 3-4 times a year to keep a track on your payment history and identify any discrepancies at the earliest.
So, these were some of the things that don't show up on your credit report. But that does not mean that you stop being careful with your payments or avoid reviewing your credit report frequently. This will help you avail credit easily.