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What steps can individuals take to improve their creditworthiness? What information cannot be legally included in your credit reports?

User Maritzabel
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Answer + Explanation:

There are several steps individuals can take to improve their creditworthiness, including:

  • Paying bills on time: Late or missed payments can have a negative impact on your credit score, so it's important to make sure all bills are paid on time.
  • Keeping credit card balances low: High credit card balances can indicate financial instability and can lower your credit score. Aim to keep your balances at 30% or less of your available credit.
  • Limiting new credit applications: Applying for too many new credit accounts in a short period of time can make you appear risky to lenders and can lower your credit score.
  • Checking credit reports regularly: Errors on credit reports can negatively impact your credit score. Check your reports regularly and dispute any errors you find.
  • Building a long credit history: A long history of responsible credit use can improve your creditworthiness.

There is certain information that cannot be legally included in credit reports, including:

  • Medical information: Information about medical conditions, treatments, or expenses cannot be included in credit reports.
  • Bankruptcies older than 10 years: Bankruptcies can only remain on credit reports for up to 10 years.
  • Criminal convictions: Information about criminal convictions cannot be included in credit reports.
  • Race, ethnicity, religion, and gender: Credit reports cannot include information about a person's race, ethnicity, religion, or gender.
  • Salary and employment history: Credit reports cannot include information about a person's salary or employment history.

Hope this helps!

User Ajay Singh Beniwal
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