Will My Credit Rating Be Affected?

Not sure if your credit rating will be affected by something? Find out who reports to credit reporting agencies.

When you apply for credit with anyone, you should first understand how it will affect your score. Not everybody will report to a credit agency.

Most credit card companies do report. Credit cards are actually the number one determining factor in most credit applications. Prepaid cards are a great way to boost your credit score.

The major car dealers do report to credit bureaus. It is important to ask about this before you buy the car. If you have to pay a loan back, with interest, then you can be certain you are being reported. Buy Here Pay Here lots don’t report. If you pay off a car this way, you can get the owner to write a letter stating the fact that you paid on time and are in good standing with them. This may work when you’re ready to buy from one of the big dealerships. It won’t, however, mean squat when you’re looking for a house.

Anyone you sign a contract with can report to credit agencies. Here is a quick list of other agencies that also report, that you may not even consider:

Gyms and spas have been reporting for a couple decades Phone companies Utility companies Water Softener companies Water cooler companies Credit Card Machine companies Apartment Complexes Storage Facilities Collection Agencies

If you’re planning any type of big decision, like buying a car or home, I suggest you get your hands on that credit report. Find out who’s reporting for and against you. Fix anything that doesn’t look right. Then wait for it to come off. After that, it’s safe to proceed with your credit application.

For additional information on credit cards or related topics please visit our library of credit card articles.