Your credit report is a record of how you have handled credit. Lenders, landlords and sometimes employers look at it, and the information in it is used to calculate your credit scores. The good news: you can see it for free and fix mistakes.
How to get your free credit reports
You can get free reports from each of the three nationwide credit bureaus, Equifax, Experian and TransUnion, at AnnualCreditReport.com, the official site for free credit reports. The bureaus now offer free reports every week. Checking your own report does not affect your credit score.
What is in your report
- Personal information: your name, current and past addresses, and sometimes employers.
- Accounts: credit cards and loans, with their balances, limits and payment history.
- Inquiries: a list of who has requested your report.
- Public records and collections: such as bankruptcies and accounts sent to collection agencies.
Hard vs. soft inquiries
A soft inquiry happens when you check your own credit or a company pre-screens you for an offer. It does not affect your score. A hard inquiry happens when you apply for credit and a lender reviews your report. Hard inquiries can lower your score slightly for a short time.
How long information stays
Most negative information, such as late payments and collections, can stay on your report for up to seven years. Some bankruptcies can stay for up to ten years. Positive, on-time payment history keeps helping your credit for as long as it is reported.
How to dispute an error
If something is wrong, such as an account you don’t recognize or a payment marked late that you made on time, file a dispute with each credit bureau that shows the error. You can usually do this online. Include copies of any documents that support your case. The bureau generally must investigate, usually within 30 days, and correct or remove information it cannot verify.
Make it a habit
Review your reports a few times a year and before you apply for any major loan. To learn how loan payments affect your score, read Can Paying Off a Loan Help Your Credit Score?
