What is a credit report?
A credit report documents a person's individual credit history. It is prepared by a credit bureau and used by a lender to determine an applicant's credit worthiness. A landlord, insurance company or potential employer may also request a copy of your credit report.
There are three credit reporting agencies in the United States - Equifax, Experian and TransUnion. Creditors purchase the information gathered by these companies to help them evaluate a person's ability to repay debt. For example, a credit report helps them decide whether to approve a loan, credit card or housing application or whether to provide a specific rate on a product or service.
What information is included in a credit report?
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A credit report provides details about credit accounts that have been opened in your name or that list you as an authorized user. It typically includes information about the type of debt you have, the lending institution for each account, past and current balances and the timeliness of repayments.
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A credit report includes personal information such as name, current and recent addresses, Social Security number, employment information, etc.
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It records inquiries by other parties. The report indicates when credit information has been shown to a lender, landlord or insurer for example.
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And it also includes matters of public record obtained from government records such as collections, liens, judgments or bankruptcies.
Why check my credit report?
Different lenders and others use credit reports to make decisions about you. A good time to check your report is when you are considering a major credit decision - purchasing a new home or car, opening a new credit card or going after a loan.
Review your report carefully. Make sure it is accurate. Check for account fraud - any accounts you didn't open or charges you didn't make. If you find any discrepancies, contact the reporting agency immediately and request the errors be corrected.
How can I get a copy of my credit report?
Protecting your credit is an important part of a healthy
financial life. For your convenience, we partner with Equifax,
and you can order your credit report or sign-up for their credit monitoring
services directly from their secure online site.
Consumers are also entitled to a free annual credit report
from each of the main credit reporting agencies under a new federal law. These
credit reports can only be requested through www.annualcreditreport.com,
which is the authorized source to access these free credit reports. The Web
site provides a map of eligible states and additional details.
