Your credit report is compiled by a credit bureau and contains information that lenders need to know about you: your name, address, social security number and employment status. Your credit report contains the number of credit accounts you have, how long you’ve had them, your credit limit and your balance. If you’re late making your payments, it’s there. And the fact that you make monthly payments is there, too. This information is reported to the three major credit bureaus—Experian, Equifax and Trans Union Corporation—by your creditors, on a monthly basis.

Generally, the more you pay your bills on time, the less you owe, and the fewer accounts you have open, the better your credit status. If your report contains negative information such as paying late or accounts in collection, it will generally stay there for seven years. Bankruptcies can stay for ten.