What Is a Credit Report?
Your credit report is a detailed record of your credit history, compiled by the three major credit bureaus: Equifax, Experian, and TransUnion. Lenders use this information to assess your creditworthiness.
Personal Information Section
This section includes your name, current and previous addresses, Social Security number, date of birth, and employment information. Verify all details are accurate, as errors here can lead to identity theft or mixed files.
Credit Accounts Section
This is the heart of your credit report, listing all your credit accounts including credit cards, mortgages, auto loans, and student loans. For each account, you will see the creditor name, account number, account type, date opened, credit limit or loan amount, current balance, and payment history.
Payment History Details
Your payment history shows whether you have paid your bills on time. Late payments are typically reported as 30, 60, 90, or 120+ days late. Even one late payment can significantly impact your score, and they remain on your report for seven years.
Credit Inquiries
There are two types of inquiries: hard inquiries (when you apply for credit) and soft inquiries (when you check your own credit or when companies pre-screen you for offers). Hard inquiries can lower your score slightly and remain for two years.
Public Records and Collections
This section includes bankruptcies, tax liens, civil judgments, and accounts in collections. These negative items can severely damage your credit and remain on your report for 7-10 years depending on the type.
How to Get Your Free Credit Reports
You are entitled to one free credit report from each bureau every 12 months through AnnualCreditReport.com. Review all three reports, as they may contain different information.
Disputing Errors
If you find errors, dispute them immediately with the credit bureau in writing. They have 30 days to investigate and respond. Keep copies of all correspondence and follow up if necessary.
Monitoring Your Credit
Regular monitoring helps you catch errors early and detect potential identity theft. Consider using a credit monitoring service or setting calendar reminders to check your reports quarterly.