Want to know more about a credit report? What is included on it? What it is used for and how your credit report may affect you? You have come to the right place for a Credit Report 101 with all the basics.
(Disclosure: Please note that this post is for educational purposes only and not to be used as financial or legal advice. For financial or legal advice, consult a licensed financial advisor or lawyer about your individual situation.)
What Is A Credit Report?
A credit report is a document that contains information about your credit activity and related finances. Information found on a credit report may include personal data such as full name, birthdate, current and former addresses and employers. Financial information may include details about your credit cards and loans such as balances, payment history, and dates obtained. Also, if applicable, accounts sent to collections, bankruptcies, liens, and legal judgements appear on the report. The time that individual items stay on your credit report depends on current legal statutes. Don’t be afraid to dig deeper into understanding your credit report 101 basics.
Who Are The Credit Reporting Agencies, Credit Report 101?
The 3 major national credit reporting agencies in the United States are Equifax, Experian, and TransUnion. Each has their own separate credit report based upon the individual sources from which they pull information.
What Companies Can Get Access To My Credit Report?
A variety of entities can access your credit report. These include companies from which you are seeking loans or credit cards. Examples include banks, car dealers, and credit card companies. Insurers may also check along with rental property managers and potential employers. Some utility and phone companies check these reports.
How Often Is A Credit Report Updated?
Generally, credit reports are updated every 35 to 45 days, with the possibility of more frequent updates per individual credit agency decision.
How Long Do Late Payments Stay On My Credit Report? How About Bankruptcy on My Credit Report?
A law in the United States called the Fair Credit Reporting Act primarily governs how long information can remain on your credit report. The length of time depends on the item. Hard credit inquires, where lender checks your credit upon you applying for something, generally last 2 years. Bankruptcies, depending on the type, may be up to 10 years. Check the current federal and state statutes for current timelines.
How Do I Get A Copy of My Credit Report?
You are entitled by federal law to a FREE copy of your credit report from Equifax, Experian, and TransUnion every 12 months by making a request at AnnualCreditReport.com. As of publication of this article, these 3 credit bureaus offer a free weekly online credit report, also. This offer may be for a limited time so confirm when you visit the site. This the official site, by US law, for your free credit reports. There are a number of scam sites out there so be sure that you are going to this particular website.
I See Something Wrong On My Credit Report? How Do I Get It Fixed?
If you find an inaccuracy on one of your credit reports, check the website of or call the company that report came from. Find out what you will need to do to dispute the information with that particular company. According to the Consumer Financial Protection Bureau, some common inaccuracies can include errors with name or address, closed or open status of an account, payment history on an account, or an account listed on your report that belongs to someone else.
What is A Credit Score? How Is A Credit Score Tied To A Credit Report?
A credit score predicts how well you handle credit including how likely you are to pay bills and loans back in a timely manner. Information from your credit report weighs heavily in a credit score. Credit scores range from 300-850. Different credit reporting companies may come up with different scores for you based upon where they pull information.
What Is A Credit Freeze?
A credit freeze means that you have stopped the ability of creditors from accessing your credit reports. A credit freeze can be temporary or permanent. You will need to lift the freeze at least for a period of time should you be seeking a loan, credit card, mortgage, etc.. that requires checking your credit report. Credit freezes must be enacted with each individual credit bureau. Credit freezes can be helpful in managing who can check your credit and in helping safeguard against identity theft.
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