The most common of these accounts would be installment accounts, revolving accounts, and collection accounts. In addition, any accounts that are past due 30, 60, 90, or 120 days, are listed separately on your credit report. Installment and revolving accounts although can be beneficial to your credit score, they can also hurt them as well. Collection accounts will always hurt your credit score.
Examples of Installment account would be your auto loans, student loans, personal loans, and mortgages. With installment loan, normally you will receive the loan amount as a lumpsum, and you will be expected to pay back the loan through a series of installment payments. The payments would be scheduled for a predetermined time, and once you have finished paying back the loan, it would be closed.
Next, we look at revolving credit accounts. The most common accounts would be your credit cards, they consist of store credit cards like JC Penny, Kohl’s, or any major realtor store. Then you also have your major credit cards, Visa, Mastercard, American Express, which normal are issued from companies like Credit One Bank, Chase, or Capital One for example.
Collection accounts are also found on your credit report. For instance, when you fall behind on a payment or when you stop paying on an account and it goes into collections, these accounts are typically sold to collection agencies. These agencies can report the collection to all three credit bureaus, and the collections will be shown on your report as a sperate item. Making your credit score fall lower.
The information that will or can be reported on your credit report can be as follows, the amount owed, name of the original account holder, account number, type of account, when it was opened. If there is a joint account holder or authorized user, the credit limit, current balance, and payment history. This will show overdue payments that are 30, 60, 90, 120 days late, or if they are in collections and even charged off.
How Long can the information stay on your account? Open accounts in good standing, can stay on the report indefinitely. Closed account in good standing can stay on for about 10 years. Late or missed payments will stay on for 7 years, whether the account is open or closed. Collections can stay off for about 7 years from the original delinquency date.
It is always important to monitor your credit report. To make sure that there are no errors. And if you find errors it is important to correct these errors so that they do not have a negative impact on your credit score.
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