Credit Report and Score – Frequently Asked Questions

When the subject of credit reports and credit scores comes up there are many questions that come to a person’s mind. Because this is such a vitally important topic it is essential that these questions be answered as accurately and as honestly as possible. The goal of this website is to provide these answers as completely as possible.

What Does a Credit Report Do?

There is one basic function of a credit report. This function is to provide potential creditors with the information needed to determine the status of a person’s finances. This includes issues such as past payment history, bankruptcy filings and lawsuits.

Who Can See My Credit Report?

The law is very clear in this area and does not allow an individual access to another person’s credit report without their express permission and knowledge. These laws are in place to protect individuals from unauthorized access of this information thus protecting them against identity theft. For this reason a person’s credit report may only be accessed by businesses with legitimate reasons for doing so.

What Does My Credit Report Contain?

A person’s credit report contains many details about a person’s financial life. This information is what creditor’s use to determine the level of financial risk associated with a specific person. Some of this information most commonly includes:

  • Payment history
  • Previous lawsuits
  • Previous arrests
  • Address
  • Late or missed payments
  • Defaulted loans
  • Bankruptcy filings

How Do I Get My Credit Report?

Equifax, TransUnion and Experian are the three national credit bureaus which are responsible for reporting credit scores throughout the country (please see - free credit report comparison). These agencies collect information on everyone and are required by law to provide anyone with this information upon request free of charge once every year.

There are three ways in which a person can gain access to this information:

  • Through a website set up by the national credit bureaus at annualcreditreport.com
  • By telephone at 877-322-8228
  • By mail

If you want to check your credit report more often, you can sign up with the three mentioned credit bureaus yourself for a minimal monthly fee.

What to Do if the Information in Your Credit Report is Wrong

Mistakes can be made anywhere and credit bureaus are no exception. There will be times when inaccuracies are discovered in a credit report. When this happens it is very important that you know what steps to take to get this information corrected as quickly as possible. The longer it goes uncorrected the more it will impact your credit score in a negative way. After a certain period of time this information cannot be changed so timing is essential. In order for this information to be corrected you must provide proof of the error in writing. When doing this always keep original documentation for your own records and send copies of this to the credit agencies.

Check Your Credit Report Often

It is recommended that every person check their credit report at least once each year to be sure that the information is accurate and if discrepancies are found they should immediately be reported.

Credit Score – How is it Determined?

Credit score is the term that is given in reference to a specific person’s risk level when applying for anything that requires credit such as a loan for school or to purchase a home. In order to determine credit scores each credit agency must have a record of at least one account that has been open for more than six months as well as one that has been updated in that amount of time. Generally the more recent the information these reports contain the more recent the credit score will be.