Your credit report is like a financial report card that lenders use to evaluate you. Understanding what is in it and how to spot errors is essential for managing your financial health.
Getting Your Free Credit Report
You are entitled to one free credit report from each of the three major credit bureaus every year through AnnualCreditReport.com. The three bureaus are Equifax, Experian, and TransUnion. Since each may have slightly different information, it is worth checking all three. Many credit cards and financial apps also offer free access to credit scores and reports.
Personal Information Section
This section contains your identifying information including your name, current and previous addresses, Social Security number, date of birth, and employment information. Review this carefully to ensure all information is accurate and belongs to you. Errors here could indicate identity theft or mixed files with someone who has a similar name.
Credit Accounts Section
Also called trade lines, this section lists all your credit accounts including credit cards, mortgages, auto loans, student loans, and personal loans. For each account you will see the creditor name, account type, date opened, credit limit or loan amount, current balance, and payment history. This is the most important section for your credit score.
Payment History
Each account shows a record of your payments, typically going back seven years. On-time payments are marked positive while late payments show as 30, 60, 90, or 120 days late. Even one late payment can significantly impact your score, so check this section carefully for errors. Sometimes payments get reported late incorrectly.
Public Records Section
This section shows bankruptcies, foreclosures, and certain civil judgments. These items have a major negative impact on your credit and can remain on your report for seven to ten years. If you see something here that should not be there or has incorrect information, dispute it immediately.
Inquiries Section
Credit inquiries occur when someone checks your credit. Hard inquiries happen when you apply for credit and can slightly lower your score temporarily. Soft inquiries, like when you check your own credit, do not affect your score. Review this section to ensure you recognize all the hard inquiries, as unfamiliar ones could indicate fraud.
Spotting and Disputing Errors
Common errors include accounts that do not belong to you, incorrect payment statuses, wrong account balances, outdated information that should have been removed, and duplicate accounts. If you find errors, dispute them directly with the credit bureau in writing. They must investigate within 30 days and correct or remove inaccurate information.
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Fig Loans reports your payments to all three major credit bureaus.
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