General Question: credit reports

[qwer9182]

What is the name of your state? Ohio

Hi, I didn't know where the best place for this post to be is so please move it if it should be somewhere else on the forum.

I would like to ask a general question: exactly when/how is a credit report established? The information such as all of your previous addresses and employment history: how does it find its way onto your credit report? Also, what are these services such as freecreditreport.com you see advertised all about?

I am eightteen and don't have any loans, credit cards, etc. so I'm pretty sure I don't even have one established. Or would they somehow get my information from somewhere to establish it?

- I did buy a prepaid "buying card" once, but it had no credit on it. I did have to show my driver's license when purchasing...would that information be submitted to create my credit report?

- I have a debit card that is in my father's name because I was 17 when I got it for my checking account. We did have an irate Internet company send the account to collection (for a $20 charge!). Would this affect a credit report? Mine or my father's? The account was under my name but the credit card was technically under my father's. (I sent the $20 by the way.)

Please advise as to how this works, thanks.

 

[bigun]

A great place to ask this is www.creditboards.com

In general, a credit report is a history {both good and bad} of how you pay your bills. Your creditors will report to the various credit reporting agencies {CRA's}. Some like, utilities, medical, etc will only report if you're late or default.
Major banks and cc's will report on a regular cycle. Some monthly, most quarterly. I've got a cc from a small holding company that update semi-annually. Of course, you miss a payment and the update will be quick!
A collection will only affect the credit report if it is reported. You'd have to pull yours and your fathers to see what is listed.
They get personal information from providers who report info from your credit application.
THe CRA's develop a credit score that is lenders use to make credit granting decisions.
www.myfico.com is a good statring place to learn about credit scoring.

 

[qwer9182]

So will collection agencies report the information as soon as they start collection or only after collection attempts begin to fail? Also, where do they get the basic personal information? I didn't fill out any credit applications or anything like that.

Is there anything harmful about using a service like www.freecreditreport.com to check these? Also, are the credit reports affected or changed at all by using one of these sites ("Who's been checking it?")?

 

[bigun]

You can access your own report with no loss of scoore.
There are millions of databases that cn be used to find personal info.
Not all collection agencies belong to the CRA's. If the don't they can't report. Also, some may not report if the bill is paid quickly. The only way to know for sure is to get a copy of your report and see what's there.
A little hint. Don't let small bills get on your report. If you have a beef over a few bucks, pay it to avoid going to collections and then dispute the charge with the creditor.
THe Fair Credit Billing Act and the Truth In Lending Act among others can be powerful tools to get stuff starightened out at the ground level instaed of escaliting to a collection that could do harm.

 

[qwer9182]

That's why I immediately sent the $20 to the collection agency (within several days of receiving the first notice). What I didn't like is that the account was actually sent to collection, because the company never tried to contact me directly prior to that.

So checking it doesn't alter it or make a note on it that you checked it and with what service?