Credit Reports 101

Conversations about credit often make people feel intimidated or confused. Here is some information to help you understand credit reports.

Your credit report contains:

• Your first and last name
• Your Social Security Number (SSN)
• Your current and former addresses
• Your current and former employers
• A list of businesses of stores that have extended credit to you
• The amount you owe to each business
• Your payment history, meaning if you have paid your bills on time, late, or not at all   
• The length of time you have had each credit line
• Other factors regarding your credit obligation, such as judgement against you or bankruptcies

​Who maintains all of this data?   
One or all of the three national credit bureaus:  

1. TransUnion (www.transunion.com)
2. Experian (www.experian.com)
3. Equifax (www.equifax.com)

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Businesses can send credit data about you to one, two, or all three of the bureaus. The bureaus are the data receivers not validators. You should ensure the information is accurate at each bureau.
You may ask yourself, “since my credit report has so much information, how can I get a copy?” Glad you asked!  You are entitled to a free credit report, every 12 months, from each of the three above credit bureaus. I encourage you to get a copy from each. Why?  Oddly enough, one report may contain a line item that they other does not. I also encourage you to use the following strategy in getting your credit reports; get one from one of the three bureaus in January, in February get a copy from the next bureau and in March get a copy from the next bureau. Using this strategy will allow you to get all three reports, in three different months which maximizes how often you can see you credit history for free and not overwhelm you to thoroughly review each.
You can obtain your FREE credit report in one of three different ways:

1. Online at www.annualcreditreport.com This one is the most popular as you will see the results right away. I encourage you to print your documents and file them away. Highlight the date you pulled it so you know when you can get another one for free 12 months later. Maybe even add a task on your calendar for 12 months later to request an updated copy.
2. By Phone at 1.877.322.8228: This is a good option if you do not have access to a computer or printer. You will be asked a few questions to verify your identity. After this, the report will be sent to you.
3. By Mail: There is a form that you can download at www.annualcreditreport.com. Complete and send it to the address listed on the form. You will receive a copy of the report to you in the mail.  

When you receive your credit report, PLEASE review it thoroughly!   
You should check for things like:     

• The correct spelling of your first AND last name
• Your current and former home addresses
• The various accounts listed to ensure they belong  to you
• The correct name of your current and former employer  

You may ask yourself, “ What if something is incorrect on my credit report?”

• You can dispute anything that is not correct. I encourage you do this in writing
• The bureaus must respond to you in writing within 30 days of your dispute
• Their response should include the result of your dispute  - agree or disagree
• You should receive an updated credit report to reflect any applicable changes

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Please note, if you get a dispute corrected with TransUnion, it will not correct the item on the Experian credit report. If the error is on another one of your credit reports, you will have to dispute it with that particular bureau.

Monitoring your reports regularly will also help you detect any identity theft.
Did you know that your credit report is reviewed:

• When you want to buy a house
• When you want to rent an apartment
• When you want to buy a car
• When you are getting quotes for car insurance
• By some employers
• When applying for credit cards
• By creditors you currently owe

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Based on the information contained on your credit report, you are given a credit score. This score will determine if you are extended new credit, denied additional credit, credit limit reduced or extended credit at a higher interest rate.
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Stay tuned for the next blog for more information on credit scores!

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