5 Surprising Things You Could Find on Your Credit Report


Credit reports don’t always make perfect sense — in fact, they often surprise many consumers with the data they include or exclude. Here are a few examples.

1. Revolving Credit That Isn’t Revolving

Some loans feel like installment loans — the amount is finite and the payments are equal installments for a predefined period of time — but they are reported to the credit bureaus as revolving credit. For example, most motorcycle and scooter loans, as well as in-store financing for furniture and electronics, fall into this category.

Unlike an installment loan (such as an auto loan), these appear on the consumer’s credit report as unsecured credit. The effect is three-fold. First, a healthy credit mix is required for a great score, so it might be to the consumer’s advantage to obtain an installment loan instead of more revolving credit. Second, credit utilization will appear artificially high during the early stages of payoff. The account will look maxed out. Third, low-tier debt, like furniture loans, is scored less favorably than revolving debt, which is scored less favorably than home loans and auto loans. Read more on GoBankingRates.com! 

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