What is a credit report?
A credit report is a record of your credit activity and current credit situation. It can include information about loans, credit cards, payment history, balances, collections, credit inquiries and certain public records.
Credit reporting companies collect information from creditors and other permitted sources and organize it into consumer reports. The Consumer Financial Protection Bureau (CFPB) explains that creditors are not required to report information to every credit reporting company, so the information in one report may not be identical to another.
In the United States, the three nationwide consumer reporting companies most commonly associated with credit reports are Equifax, Experian and TransUnion.
What is on a credit report?
The exact layout can vary between credit reporting companies, but consumer credit reports commonly contain several major categories. The CFPB identifies personal information, credit accounts, collection information, certain public records and inquiries among the information that may appear.
1. Personal information
This section helps identify the consumer associated with the report. It can include your name, previous names associated with credit accounts, current and former addresses, date of birth, telephone numbers and Social Security number information.
2. Credit accounts
Credit accounts are often called tradelines. They can include revolving accounts such as credit cards and installment accounts such as auto loans, personal loans or mortgages.
Account information can include the creditor, account type, opening date, current balance, credit limit or original loan amount and payment history.
3. Payment history
A report can show whether payments were made on time and whether an account became delinquent. Payment history is important because the information in your report can be used by credit scoring models and can also be reviewed directly by permitted users.
4. Credit inquiries
Inquiries record requests to access your credit report. Some inquiries occur when you apply for credit, while others can happen when your existing accounts are reviewed or when a company makes a prescreened offer.
Hard inquiries can affect many credit scores, while soft inquiries do not affect your credit scores. Your own request for your credit report is a soft inquiry.
5. Collections
Accounts sent to collections may appear on a credit report. A collection entry can provide information about an unpaid debt and the company reporting or handling the collection.
6. Certain public records
Certain public-record information may also appear. Depending on the report and applicable reporting rules, this can include information related to bankruptcy and other permitted records.
How to read the account section
The account section can look complicated because different creditors use different descriptions and reporting formats. Focus on the information that helps you confirm whether the account belongs to you and whether the reported details are accurate.
| Information | What to check |
|---|---|
| Creditor name | Confirm you recognize the company reporting the account. |
| Account type | Check whether it is a credit card, mortgage, installment loan or another account. |
| Balance | Compare the reported balance with your account records. |
| Credit limit | For revolving accounts, check whether the reported limit is accurate. |
| Payment history | Look for late payments or other entries you do not recognize. |
| Opening date | Check that the account was opened when you remember opening it. |
| Account status | Look for incorrect labels such as closed, delinquent or in collections. |
Credit report vs. credit score
A credit report and credit score are related, but they are not the same thing.
| Credit Report | Credit Score |
|---|---|
| A record of credit-related information. | A number generated by a scoring model. |
| Can contain accounts, balances, payment history, inquiries and other information. | Summarizes credit risk using a particular scoring model. |
| Maintained by credit reporting companies. | Calculated using a scoring model and information available to that model. |
| Can be reviewed for accuracy and disputed when information is inaccurate or incomplete. | Can change when the information used by a scoring model changes. |
The CFPB explains that credit scores are calculated using information in credit reports, but there are many different scores and scoring models. The score you see can therefore differ depending on the scoring model, credit reporting agency and product for which the score is calculated.
Why is your credit report important?
Credit reports can be used by lenders to help evaluate applications for credit and determine terms such as interest rates. Depending on the circumstances and applicable law, credit reports can also be used by other businesses for purposes such as insurance, housing or employment.
That makes the accuracy of the information important. An account that does not belong to you, an incorrect balance or an inaccurately reported late payment can affect the information that businesses or scoring models see.
Reviewing your reports can also help you spot signs of identity theft, unfamiliar accounts or unauthorized credit applications.
Why can your credit reports look different?
You can have more than one credit report because different credit reporting companies maintain separate files. Creditors do not necessarily report to every bureau, so one report may contain an account or update that has not appeared on another report yet.
Differences can also occur because companies may update information at different times. For that reason, checking more than one report can provide a more complete picture of the information being reported about you.
The three nationwide bureaus
- Equifax
- Experian
- TransUnion
These companies maintain consumer credit files and provide reports to permitted users under applicable law.
How to check your credit report
One of the most useful reasons to obtain your credit report is to review the information before applying for major credit or when you suspect something is wrong.
- Use the official AnnualCreditReport.com service AnnualCreditReport.com is the federally authorized source for obtaining your credit reports from the nationwide credit reporting companies.
- Review each report carefully Check your identifying information, accounts, balances, payment history, collections and inquiries.
- Look for unfamiliar activity Pay attention to accounts or inquiries that you do not recognize.
- Save copies for your records Keep your reports and supporting account statements so you can compare information later.
- Dispute information that is inaccurate or incomplete Follow the credit reporting company's dispute process and provide supporting documentation when appropriate.
What should you do if you find an error?
Do not ignore information that you believe is inaccurate or incomplete. Start by identifying exactly what is wrong and gathering documents that support your position.
- Identify the account or entry containing the error.
- Compare it with statements, account records or other documentation.
- Contact the credit reporting company using its dispute process.
- Contact the company that supplied the information when appropriate.
- Keep copies of your dispute and supporting documentation.
- Review the results and follow up if the issue is not resolved.
Under the Fair Credit Reporting Act (FCRA), consumers have rights concerning the accuracy and use of consumer-report information. The FDIC explains that when consumers identify incomplete or inaccurate information and report it to a credit bureau, the bureau generally must investigate unless the dispute is considered frivolous.
What are hard and soft inquiries?
An inquiry occurs when someone requests access to your credit report for a permitted purpose. The CFPB describes two broad categories: hard inquiries and soft inquiries.
| Type | Common example | Effect on credit scores |
|---|---|---|
| Hard inquiry | You apply for a credit card, loan or other credit product. | Can affect many credit scoring models. |
| Soft inquiry | You check your own report or a company reviews your file for certain permitted purposes. | Does not affect your credit scores. |
When reviewing the inquiry section, make sure you recognize the companies listed. An unfamiliar hard inquiry can be a reason to investigate whether an application was made without your authorization.
What if you see an account you do not recognize?
An unfamiliar account does not automatically prove identity theft. There can be legitimate explanations, such as a creditor reporting under a different business name or an account associated with another person in a joint or authorized relationship.
However, do not ignore an account you cannot explain. Check your records, contact the creditor using independently verified contact information and review the information with the relevant credit reporting company.
If you believe you are dealing with identity theft, use the appropriate identity-theft reporting and recovery resources and consider additional credit protections such as a fraud alert or credit freeze.
How long does information stay on a credit report?
Credit-report information does not all remain for the same length of time. The reporting period depends on the type of information and applicable federal and state rules.
The FDIC notes that, in most cases, negative information may not be reported after seven years, while bankruptcies may generally be reported for up to 10 years, subject to the specific rules and circumstances.
The important distinction is that the age of an item does not mean you should attempt to dispute accurate information merely because it is negative. Reporting periods and exceptions can be complicated, so check the applicable rules when a specific account is involved.
Does a credit report determine your credit score?
Information in your credit report is used by credit scoring models to calculate credit scores. However, a report does not contain one universal score that applies to every lender.
Different scoring models can use the available information differently, and lenders may request different scores depending on the type of credit being considered. The CFPB notes that consumers have many different credit scores.
This is why checking your credit report and checking a credit score are two different activities. The report helps you inspect the underlying information; the score gives you a numerical result from a particular scoring model.
What to look for when reviewing your credit report
- Your name and identifying information are correct.
- Every listed credit account belongs to you.
- Account balances appear accurate.
- Credit limits on revolving accounts are correct.
- Account opening and closing dates make sense.
- Payment history matches your records.
- Collection accounts are recognizable and accurately reported.
- Hard inquiries are familiar.
- There are no unexpected signs of identity theft.
- Old information is being reported according to applicable rules.
Common credit report mistakes to avoid
- Confusing a credit report with a credit score. They are related but different.
- Checking only one report. Different bureaus may have different information.
- Ignoring unfamiliar inquiries. Investigate inquiries you do not recognize.
- Assuming every negative entry is an error. Negative information can be accurate and legitimately reported.
- Waiting until after a loan application to check. Reviewing earlier gives you more time to investigate discrepancies.
- Using an unofficial website to obtain sensitive information. Use trusted, official resources when requesting credit reports.
Frequently Asked Questions
What is a credit report in simple terms?
A credit report is a record of information about your borrowing and repayment activity. It can include credit accounts, balances, payment history, collections, inquiries and certain public records.
What information is on a credit report?
Credit reports can contain identifying information, credit accounts, balances, payment history, collections, credit inquiries and certain public records such as bankruptcy information.
Is a credit report the same as a credit score?
No. A credit report is the underlying record of credit information. A credit score is a number calculated by a scoring model using information from your credit history.
Who maintains credit reports?
The three nationwide consumer credit reporting companies are Equifax, Experian and TransUnion. Other specialty consumer reporting companies can also collect specific types of consumer information.
Does checking my own credit report hurt my credit?
No. A consumer's request for their own credit report is a soft inquiry and does not affect credit scores.
Can I get my credit report for free?
Consumers can obtain credit reports through AnnualCreditReport.com, the federally authorized source for free credit reports from the nationwide credit reporting companies.
Why are my credit reports different?
Creditors are not required to report to every credit reporting company. Different reporting schedules and data can therefore cause information to vary between reports.
What should I do if something is wrong on my credit report?
Gather supporting documentation and dispute inaccurate or incomplete information with the relevant credit reporting company and, when appropriate, the company that supplied the information.
How often should I check my credit report?
Regularly reviewing your reports can help you monitor account information and spot potential errors or identity theft. You can check your reports when preparing for major borrowing and whenever you have a reason to suspect inaccurate or unauthorized information.
Sources & Further Reading
This guide was informed by consumer-credit education and government resources, including the Consumer Financial Protection Bureau, FDIC, Experian and myFICO.
- Consumer Financial Protection Bureau — Credit Reports and Scores
- FDIC — Credit Reports
- Experian — What Is a Credit Report?
- myFICO — Understanding Credit Reports
- AnnualCreditReport.com — Official credit-report access resource