What is a Credit Report?
A credit report is a summary of your credit history and a status of your credit accounts. Information contained in your report includes:
Identifying Information
- Name
- Social security number
- Date of birth
- Employment information
Credit Accounts
- Types of accounts (credit cards, auto loan, mortgage, etc.),
- Date accounts were opened
- Credit limit or loan amount
- Account balance
- Payment history
Credit Inquiries
When you apply for a loan, you give permission for the creditor to access your credit report. It will show everyone who has accessed your report in the last 2 years.
Hard Inquiries: When you have given permission for someone to access your report
Soft Inquiries: Experian states, "A soft inquiry, sometimes known as a soft credit check or soft
credit pull, happens when you or someone you authorize (like a potential employer)
checks your credit report. They can also happen when a company such as a credit card
issuer or mortgage lender checks your credit to preapprove you for a offer. Soft
inquiries don't impact your credit scores because they aren't attached to a specific
application for credit" (https://www.experian.com/blogs/ask-experian/what-is-a-soft-inquiry/).
Collection Items
When you fail to repay a debt that is owed, it is turned over to a collection agency.
Public Records
Information from state and county courts
- Bankruptcies
- Foreclosures
- Suits
- Wage garnishments
- Liens
- Judgements
What is a credit report used for?
- Lenders use credit reports to determine whether or not they will lend you money and what interest rate they will apply to that loan.
- Credit reports may be used when you rent an apartment.
- In some cases, when you give permission, employers may use your credit report when you apply for a job.
Who can access your credit report?
Access to your credit is limited under the federal Fair Credit Reporting Act (FCRA). Only individuals or organizations with legitimate business purpose may perform credit checks and access your credit report. Examples include lenders, potential employers (when you give written consent), landlord seeking a credit check for renters, and credit card companies.
Can I view my credit report?
Yes! Included in the federal Fair Credit Reporting Act is your right to know what is in your life. Under the law each of the three credit reporting companies (Equifax, Experian, and TransUnion) are required to provide a free credit report, at your request, once every 12 months.
You can order all three at the same time or you can stagger your requests over the 12 month period. Staggering your requests may be a good way to monitor and ensure accuracy of your report.
To obtain your credit report online, visit www.annualcreditreport.com. You may also request your report via phone by calling 1-877-322-8228.
Be careful! There are numerous websites that exist offering "free" credit reports. These sites are not part of the legally mandated free annual credit report program. These sites often offer a free report as part of a credit monitoring service you pay to subscribe to.
What if I find an error on my report?
Determine if the item is really an error.
For example, a credit inquiry on your report that you do not recognize is not necessarily an error. Remember, companies that check your credit are required to report that credit check. Another example is a collection account listed on your report. Just because you paid off a collection account, that does not mean it's a mistake that it shows there. Items stay for 7 years on a report.
Initiate a dispute with the credit reporting company
Once you have determined the item is an error you can contact the credit reporting company to dispute it. Each of the three companies have ways to dispute errors online- Equifax, Experian, and TransUnion. While online disputes are convenient, you may not be able to include documentation to support your dispute. If you have documentation you want to include, then you may want to dispute the item by mail and include the information you want them to consider.