Perhaps you have had some rotten luck, or simply rotten payment habits in the past, and your credit report and therefore your credit worthiness has suffered tremendously for it. You believe you have what it takes to make all your payments on time and get your credit reputation back up to where it was before you got into this mess. After all, it has been seven years since you made your last mistake, and as far as you know, all of the mistakes that have been infesting your credit report during that time should be dissolved completely by now.

So let’s say you go to check your credit report. Much to your surprise and dismay, those payment mishaps are STILL on your credit report! What went wrong? What happened to all those stories you heard about how your credit report is wiped clean of your mistakes after seven years?

It is true, the negative items on your credit report SHOULD be erased after a certain amount of time… in most cases, seven years. There are some things, however, that can hinder this removal. In order to know how to fix the problem, you have to know what the problem is first.

1. They Could Have Simply Forgotten

You may be paying close attention to your credit report, but the credit bureaus, or the people who come up with your credit report, may not be watching so closely. To them, yours is just one in thousands and thousands of credit reports waiting to be changed and updated every day. If, after seven years, your credit report is not cleansed of your misdeeds, you should call the major credit bureaus, (Equifax, Experian, and TransUnion) and let them know.

2. Extended Punishment

Sometimes, believe it or not, creditors will try to extend the amount of time that the negative items are left on your credit report. How do they do this? Actually, they use YOU.

On your credit report there are dates next to the negative items. These dates represent the time when the seven year period of shame begins. If you are almost done with the seven years, look at your credit report and suddenly feel guilt for all those mishaps, call up the creditor and make the payment, you may have just extended that period of shame ANOTHER seven years.

Actually, this is sometimes done by faulty creditors. Many of them will often try to hurt your credit report more by extending the amount of time that the negative items appear on it. THIS IS ILLEGAL! When the seven years is extended, make sure you know WHY before you just give in.

Besides any of the possible interruptions previously mentioned, after seven years, the bad records on your credit report should be removed after seven years. There are a few exceptions, like bankruptcy, that can last for up to ten years. The good thing about it is that all of the bad reports will go away eventually, but all of the positive items can stay on your credit report for good.

People talk about credit cards, credit limits, credit history, credit scores, and credit reports all of the time. But what do all of these terms mean? Who decides what your credit score is and what is on your credit report anyway?

People may understand what their credit scores are, and what comes up on their credit report, but perhaps they do not understand who puts it all there. Of course YOU are responsible mainly for what score you get and what goes on your credit report based on your credit history, but who takes all that information, puts it into an equation, evaluates it, and scores it?

The people who are responsible for calculating your credit score and updating your credit report are part of what is called a credit bureau. These are also called credit reporting agencies. But still, who are these credit agencies, what all do they do, and how does that affect you and your ability to buy on credit?

Credit Bureaus

The three main credit bureaus are Experian, Equifax, and TransUnion. They are the primary sources that provide a person’s credit report. They are who you go to when you want to get a copy of your credit report, and they are who you talk to when you have an argument concerning possible errors on that report. They also calculate your credit score, and all of this is based on your credit history, or the management skills you have developed or lacked within the time you have held a credit account.

You’re Being Reported

Whenever you do business using credit, the lender you got the credit or loan from, like a bank, credit card company, or department store, is connected to the credit bureaus. They report, to the credit reporting agencies, your practices concerning your credit card or loan payments, how far in debt you are, how close to the limit you are, and how much extra you may be paying on your bills each month. They report anything and everything that you do, whether good or bad, that will portray how well you can handle credit.

Three for Free

Credit reporting agencies allow you to access your credit report once a year for free. This means that you can get a report from all three of the major bureaus for free once a year, therefore allowing you a total of three free credit reports per year. This is a more recently added right given to credit holders, and has only been in effect nationwide for a few years.

It’s easier to understand your credit scores and your credit report once you understand who organizes them. It is also helpful to know where to go if you have a problem with either of these. Do not be afraid to take any problems you have to these credit reporting agencies, because since they have so many people and reports to worry about, they cannot fix your problems without you helping them to recognize those problems.