This month, we’ve been talking a lot about credit health. So far, we’ve touched on spending habits and debt consolidation. Through it all, one term keeps coming up: the credit report. Credit reports are a vital financial tool, but they can be confusing—especially if you are just starting out on your financial journey. So, we’re here to answer all your burning questions about credit reports—including how to get them, how to avoid scams, and what to do with the information.
1. What is a credit report?
A credit report is like a report card of how you’ve handled your credit accounts. This includes the number of credit accounts you have open (as well as closed accounts), your payment history; accounts that are in collections; the number of times you have applied for credit; and more. Credit reports also include bankruptcies and a record of unpaid child support or alimony payments.
2. Is my credit score included in my credit report?
No. Credit scores (sometimes called FICO scores) are not included in reports from Equifax, Experian, and TransUnion. This is because credit scores represent different information regarding your credit. Credit reports reflect your credit activity, while credit scores represent a calculation of that activity. Each of the credit bureaus calculates the data in your credit history differently, so your score may differ by agency. Fortunately, you can easily check and monitor your credit score through other methods including:
- Credit card statements. Many credit card companies provide updated information about your credit score in your statement or online account.
- FICO Scores through Experian. You can access a free credit score with some regularity by creating an online profile with Experian. There is a monthly cost, however, to access your credit scores across all of the credit bureaus.
- Free credit score services. Credit score services (like Credit Karma) are useful for checking your score as often as you like. Keep in mind that Credit Karma isn’t a credit bureau, so they don’t gather information from creditors. The score you see on Credit Karma reflects your credit information as reported by TransUnion and Equifax, but it may not be up to date.
- Maps Online Banking. If you carry a Maps loan or have a checking account with courtesy pay, you can check your FICO score by logging into online or mobile banking. From the menu, click “More” and then “FICO Score”.
3. What do I need to obtain a credit report?
You will need to provide your name, address, Social Security number, and date of birth. For online and phone requests, you may also be required to provide information that is not generally known by others, such as the amount of your monthly mortgage payment.
4. How often can I get a free credit report?
Consumers can access free weekly credit reports from each of the three credit reporting agencies at AnnualCreditReport.com. You read that right, weekly! For decades, federal law allowed only one free credit report every 12 months. However, in 2020, the three major credit bureaus made free weekly reports available to help people manage turbulent financial times. The program was extended twice and then made permanent in September of 2023.
5. Are there other ways to get a free credit report?
Yes. Under federal law, you’re entitled to a free credit report if you are denied credit, employment, insurance, or other benefit due to your credit history. You are also entitled to a free report if unfavorable action has been taken against you based on information in your credit report (which is known as an adverse action notice). You have 60 days from the notification of denial or action to request the free report. The notice should give you the name, address, and phone number of the credit bureau that reported the issue.
You can also get a free credit report at any time if:
- you’re out of work and plan to look for a job within 60 days
- you’re getting public assistance
- your report is inaccurate because of identity theft or other fraud
- you have a fraud alert on your credit file
6. How can I avoid credit report scams?
To avoid scams, only access your credit reports through AnnualCreditReport.com, which is jointly operated by the three credit bureaus, Experian, TransUnion, and Equifax. You can also obtain reports directly from each of the credit bureaus. Watch out for phony free credit report websites that pose as legitimate sources but aim to steal your personal information. Be wary of any company that charges money or claims it can help wipe negative data from your report.
7. Okay, I have a credit report. What do I do with it?
First and foremost, check your report for discrepancies or errors. Next, look for ways you can resolve issues and improve your credit score. To do this, it is important to know where you currently stand and what’s impacting your score. Once informed, you can make changes based on what you find in your unique credit file.
- Personal Data. Look at your personal information (name, birthdate, address, phone number, employers, spouse, etc.) Errors in your personal information could be typos or a sign of identity theft.
- Inquiries. Check the list of hard and soft inquiries. Only hard inquiries impact your credit score, so if there are hard inquiries you don’t recognize, take a look at the source. It’s not always cause for concern, but it’s worth noticing.
- Public Records and Judgements. Bankruptcies can have a huge impact on your credit report. A Chapter 13 bankruptcy will stay on your report for 7 years from the filing date. Chapter 7 bankruptcies stay on your report for 10 years after the filing date. If you find inaccurate information on your report related to bankruptcy, you can dispute it. If you filed for bankruptcy, there is no way to remove it until the clock runs out. Child support and alimony arrears can also stay on your credit report for 7 years—even if the debt is resolved. However, once the debt is satisfied, the account will most likely be classified as closed, but in good standing.
- Accounts. The meatiest part of your credit report will likely be the account section. First, look for accounts that are reported incorrectly or accounts that you didn’t open. If you find anything questionable, investigate. Next, review all of your accounts to make sure they are accurate and up-to-date. The balances may not be as current as your records, but if something is significantly off, contact your lenders.
Once you are familiar with your credit report, keep an eye on it. Check your credit report regularly (at least once or twice a year) to watch for improvement and unexpected changes. Work to improve your credit history by reducing your credit utilization rate and paying your bills on time. Don’t close old accounts (even if they are paid off) without considering the impact. By being proactive and informed, you can improve your credit score and set a pathway toward better financial health.
Want more tips on improving your credit health?
- Check out The Pros and Cons of Debt Consolidation.
- Test your knowledge of credit and debt with our Credit Quiz.
- Follow these tips to “Break Up with Credit Card Spending“.