Your Credit Report is NOT a Financial Report Card

A credit report is a summary of a part of your history with money, so it’s understandable that some people view it as a “money report card.” But it’s not. Your credit report only considers your history with debt; how much and how you’ve paid it off over time. It doesn’t take into account whether you can stick to a budget, save for a rainy day, or invest for long term goals.

The information on your credit report is the basis for your credit score (more on those next week) and more. That means understanding what makes it on your report, how long it lasts, and whose responsibility it is to ensure it is accurate is really important. We have all of that information, and more, in one short read right here.