What is a Credit Report?

Don't know what is on your credit reports? Make sure you find out.

If there are errors, omissions, or evidence of fraud on your reports, the sooner you know about them, the sooner you can get your credit reports cleaned up. You can order a free copy of your credit reports at www.annualcreditreport.com or sign up for a credit monitoring service that will alert you to changes on your credit report as they happen.
Your credit reports are a collection of positive and negative information about your handling of your finances. Your credit reports include information about your employment, loans you currently owe on and whether or not you are making your payments on time, accounts that have been sent to collections or have been charged off, court records such as bankruptcies and judgments, and inquiries which are requests to view your credit report.

Your credit report are compiled and maintained by credit reporting agencies, or credit bureaus. There are three major credit bureaus in the United States; Equifax, Experian, and TransUnion. these credit bureaus receive the information included in your credit reports from your individual creditors. For example, if you have credit cards, the credit card company typically reports to the credit bureaus each month letting them know what your credit limit is, how much you owe on the card, and if you have past due payments.

What's In My Credit Reports?

Merchant Trade LinesIncludes all regular lines of credit including credit cards, department store cards, and loans such as mortgages and auto loans. Also includes payment history on these accounts including late payments, accounts that were charged off, put into repossession, or included in a bankruptcy.
Collection AccountsIncludes trade lines that have been turned over to a collections agency. These items can be listed as paid or unpaid, but are always considered negative listing on your credit report.
Court RecordsIncludes negative items such as bankruptcies, judgments, and liens that are reported to the credit bureaus by the courts system. all listings in this category are considered negative.
InquiriesInquiries are notes added to your credit reports indicating that a potential credit grantor has looked at your credit file. They are an indication to others that you are looking to procure additional lines of credit.

How Credit Reports are Used

Your credit reports are used by a number of entities in order to get an idea of how responsible you are as a consumer and as a person in general. Lenders use your credit reports to gauge your credit risk. Based on how you have managed your finances in the past, they will make assumptions on how you will manage them in the future and use those assumptions to determine whether or not to lend you money and what interest rate they will charge. Employers, landlords, and auto insurance companies may also use the information in your credit reports as an indicator of whether you will be a good employee, a dependable tenant, or a safe driver.

Ordering Your Credit Reports

You have the right to receive one free copy of your credit report from each of the major credit bureaus once every 12 months. This can be done online at www.annualcreditreport.com, by phone by calling 1-877-322-8228, or through the mail by printing and filling out the request form located at here (PDF) and mailing it to the address:

Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281

Credit reports ordered online will be made available as soon as you have completed the verification process. Credit reports ordered by phone or mail will take 2-3 weeks for delivery.

Credit Report Questions

What is more important, my credit score or the stuff in my credit report?
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How often should I check my credit reports?
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How do I get my credit reports for free?
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