Credit Report Truths
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What Information is in Your Credit Report.
Information provided in whole or part by myFico.com and LandAmerica Credit Services
Your credit report shows the information you have on file at one or all of the three major credit reporting agencies - Equifax, Experian and TransUnion. Each of these reporting agencies (also known as credit bureaus) maintain their information separately, so the data you have on file may differ between them.
What's In Your Report
Your credit report contains a variety of personal data. Some of this information, but not all, is used when making lending decisions. Although each credit reporting agency formats and reports this information differently, all credit reports contain basically the same categories of information. Your social security number, date of birth and employment information are used to identify you. These factors are not used in scoring. Updates to this information come from information you supply to lenders.
Identifying Information.
Your name, address, Social Security number, date of birth and employment information are used to identify you. These factors are not used in scoring. Updates to this information come from information you supply to lenders.
Trade Lines.
These are your credit accounts. Lenders report on each account you have established with them. They report the type of account (bankcard, auto loan, mortgage, etc), the date you opened the account, your credit limit or loan amount, the account balance and your payment history.
Inquiries.
When you apply for a loan, you authorize your lender to ask for a copy of your credit report. This is how inquiries appear on your credit report. The inquiries section contains a list of everyone who accessed your credit report within the last two years. The report you see lists both "voluntary" inquiries, spurred by your own requests for credit, and "involuntary" inquires, such as when lenders order your report so as to make you a pre-approved credit offer in the mail.
Public Record and Collection Items.
Credit reporting agencies also collect public record information from state and county courts, and information on overdue debt from collection agencies. Public record information includes bankruptcies, foreclosures, suits, wage attachments, liens and judgments.
How Mistakes are Made
Mistakes happen - and they can affect your ability to obtain credit. By learning the most common mistakes, you'll know what to look for when you review your credit report. When a credit report contains errors, it is often because the report is incomplete, or contains information about someone else. This typically happens because
The person applied for credit under different names (Robert Jones, Bob Jones, etc.). Someone made a clerical error in reading or entering name or address information from a hand-written application. The person gave an inaccurate Social Security number, or the number was misread by the lender. Loan or credit card payments were inadvertently applied to the wrong account.
Checking Your Report
You should review your credit report from each credit reporting agency at least once a year and especially before making a large purchase, such as a house or car. You should make sure the information in your credit report is correct. Not only is your credit score based on this information, but lenders also review this information in making credit decisions. Review your credit report from each credit reporting agency at least once a year and especially before making a large purchase, like a house or car. To request a copy, contact the credit reporting agencies directly:
Equifax: (800) 685-1111, www.equifax.com
Experian (formerly TRW): (888) 397-3742, www.experian.com
TransUnion: (800) 888-4213, www.transunion.com
If you find an error, the credit reporting agency must investigate and respond to you within 30 days. If you are in the process of applying for a loan, immediately notify your lender of any incorrect information in your report. Your lender will need to reorder your credit report and score once any changes have been made to your information at the credit reporting agency. Small errors may have little or no effect on your score. If there are significant errors, however, the lender may disregard the score.
Note: only the credit reporting agencies have the data from which FICO scores are calculated. Fair Isaac can't correct data at the credit reporting agencies.
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