What's on my Credit Report?

Your credit report is a constantly updated document that reveals your personal credit information. It is the most important piece of information creditors use when deciding whether to grant credit and, if so, how much to give.

The information collected in a credit report is gathered by for-profit agencies known as credit bureaus or credit reporting agencies. The three major national credit bureaus, known as the "Big Three," are Equifax, TransUnion, and Experian. The Big Three, as well as about 2,000 smaller credit reporting agencies nationwide, are required by law to list information accurately. As a consumer, you have the right to receive, upon request, copies of your credit report.

Credit reports typically hold four types of information: personal, credit account, public record, and inquiry.

Personal

The top portion of a credit report includes names, nicknames, old and current addresses, Social Security number, birth date, and current and previous employers. Correct personal information is vital in ensuring that credit reports belong to the right persons.

Credit History

This section includes information obtained from your creditors that contains specific data about both open and closed accounts. This includes the date the account was opened, credit limit or original amount of the loan, amount presently owed, regular monthly payment, and payment pattern over the past several years. This information also lists whether anyone else shares responsibility for paying the account

Public Record

This section features information contained in public records, including any bankruptcies, tax liens, or monetary judgments.

Inquiries

The final section of a credit report contains information gathered by credit bureaus identifying the names of persons and organizations that have obtained a copy of your credit report. Inquiries also identify the reasons reports are obtained.

Credit reports are often reviewed by individuals to verify that information is accurate, to confirm reasons for rejection of credit or insurance, or to identify fraudulent activities. Credit reports are generally obtained by businesses and employers in order to measure a consumer's ability to pay off expenses and debts. When you apply for a job, an employer will often ask you to sign an application form that entitles the employer to investigate your credit background. That investigation is conducted by obtaining a copy of your credit report.

Your credit report will also be examined each time you apply for credit, insurance, or lease agreements. Such applications normally require your signature permitting review of your credit report, so it's important to be fully aware of what you are signing.

Another thing to know about the Big Three credit bureaus is that they compile their own data independently of each other. A credit report from one bureau may not be the same as a credit report from another bureau. For that reason, it is advisable to obtain your credit report from each of the Big Three bureaus every one to two years in order to correct any errors or discrepancies that may appear on your report.