Your credit report reflects your payment history. Any opened accounts that are current and delinquent for the past seven years will be on your report. Your credit report will also show any inquiries for potential lenders that have requested to view your credit history. Previous address and alias is also seen on your report.
Most lenders will never see your credit report because they go by your credit score. Nevertheless, since your credit score is based on what is in your credit report it is a good idea to know what is on yours. Potential lenders, insurance agencies and potential employer may pull your report or score to determine if you are credit worthy. For insurance carriers, a bad credit report can make the difference in your insurance rate. It is common practice for employers to pull your credit score if the job involves handling money or other credit information.
How to Get Your Credit Report
There are three options to receiving your credit report.
- By phone: You can order your credit report by phone at 877 322-8228.
- Online: At AnnualCreditReport.com, you can get a free report once a year.
- By mail: On the same site, you can mail a request to the address provided.
Making heads or tails out of your Credit Report
Reading your credit report can be a bit confusing. There is a lot of information on there to digest. If you are having trouble understanding your report help is available. If you have an established relationship with your banker, you could ask for assistance with reading your report. Take a copy with you when you approach him or her because due to confidentiality issues, they may not be able to print one. Another solution is to contact a nonprofit credit-counseling agency near you. Often these organizations will help you free or for a small fee. To find an agency near you please visit http://www.aiccca.org/ or http://www.nfcc.org/. The library is another free source of information. There, you will find books to help you understand your credit report and to help you dispute any errors on your report that you may find.
About Your Credit Score
The credit score is a three-digit number that ranges from 350-850. It is also referred to as your FICO score because FICO came up with the score. This little score can determine your credit worthiness and depending on the credit agencies (Experian, Trans Union and Equifax) used, you can have three different credit scores.
If you have great credit and intend on getting credit for a large purchase, you should view your credit report for any errors at least three months prior (For bad credit, at least six months.) This will give you time to dispute and correct any errors and/or take steps to improving your credit.
Improving Your Credit Score
Most people have some idea what it takes to improve their credit score because it is straightforward. Pay your bills on time and don’t spend beyond your means. However, it is also a good idea to check for errors on your credit report at least once a year. Errors can bring down your credit score. You credit report will also show identity theft. These are accounts that have been open in your name but not by you. This too can affect your credit score. If you find anything that looks suspect, contact each credit bureau in writing, immediately.
Take Pride in Your Credit Score
Most people take pride in their high credit scores, as they should. However, along with that pride should come protection. You should protect yourself because having a credit score also makes you a target for identity theft. You can safeguard against this by reviewing your credit report at once a year. However, you can also request to be alerted via email or text if there is any significant changes made on your credit report. Contact each credit bureau for more information on alert services.
Equifax.com or call 1-800-525-6285
TransUnion.com or call 1-800-680-7289
Experian.com or call 1-888-397-3742