A credit score gives an overview of a person’s credit history spanning the last 7 years. This information gives an idea about the person’s borrowing and repayment abilities. The information is compiled based on the data that credit bureaus receive from different lenders. A credit report does not highlight a person’s criminal record. Hence, if a person is convicted for misdemeanor, it will not reflect in his/her credit history, and the person’s credit score will not be affected. But having a misdemeanor can ruin a person’s chances of getting a job or even renting house. Many organizations and landlords do a criminal background check on people along with a credit check.
Whenever a person borrows money, the lender will report the same to the credit bureau. This information is then converted into a 3-digit credit score. The bureaus do not divulge how the come to the score, but it takes into consideration the amount the person owes, the repayment behavior, the duration of the person’s credit history, the different types of credit that the person uses, and the number of credit applications that the person has. Each time a person borrows, the potential lender will write to one of three major credit bureaus and request for the person’s credit score. The score allows the lender to check whether the person is credit worthy and has the ability to repay the borrowed sum. The lower a person’s credit score, the riskier he/she is. Such people either are denied the money or are lent money at exorbitant rates. On the other hand, people with high credit scores are lent money more easily and at competitive interest rates.
A credit report will have the person’s name, date of birth, address, Social Security Number, driver license number and address. It will include information of the person’s employment. Furthermore, the report will highlight the amounts the person has borrowed and repaid over the last 7 years, including bankruptcies and liens. If the person has defaulted on a debt or missed out on an installment payment, it will be reflected in the report.
The credit report does not include data pertaining to a person’s income or savings. It does not mention anything about the person’s criminal record, religious beliefs, medical history or sexual orientation. The fact that a report does not highlight any criminal record means that a misdemeanor will not appear on the credit report. This information will be available if a criminal background check is performed. The misdemeanor will always be present in a person’s criminal record, and may prove to be a hindrance when searching for a job. A misdemeanor will have no bearings on a person wanting to get a mortgage or credit card, but it could pose a problem when he/she wants to rent a home.