Credit ratings are fundamental personal debt histories. They follow us our entire lives, providing a glaringly straight picture of our financial behavior. Lenders and credit card companies look to credit ratings for the most precise assessment of whether we are good risks or bad risks. But just precisely what kind of information do credit ratings contain?

For starters, credit ratings contain all the basic personal information you would expect them to have, such as full name, address and social security number. Any debt you owe will be added to your credit report. Credit ratings include every store credit card you carry, their maximum limit and how close you are to reaching that limit. Payment history is included as well. A clean credit report will show no late payments, hardly any applications for new credit or loans and low balances on existing credit cards. Good credit ratings lower interest rates with banks and credit card companies.

Negative comments, past foreclosures and bankruptcies clearly do not look good on credit ratings. Credit ratings carry negative information for a long time. Late payments, for instance, remain on your credit rating for seven years. Bankruptcies can stay on for ten years. Frequent loan and credit applications are also damaging. It pays to keep a superior financial profile. You can help yourself by checking your credit report annually. Credit ratings sometimes contain information that is out of date, such as your maiden name instead of your married name or an old address. Negative errors can occur, too. These need to be found well before you apply for credit or loans. Credit ratings can take weeks, even months, to correct.

In high school, children joke about what goes on their permanent record. Credit ratings are permanent records that are no laughing matter. You should make it a point to know what is in your credit ratings.

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