Your credit report is a record of how you have used credit, and it shapes far more than loan approvals. Lenders use it to set interest rates, landlords use it to screen tenants, insurers in many states use credit-based information to price policies, and utilities may use it to decide whether to require a deposit. Because so much rides on it, it is worth knowing how to read one and what to do when something is wrong. The good news is that checking is free, and federal law gives you a clear process for correcting mistakes.
Credit report vs. credit score
A credit report is the detailed history. A credit score is a three-digit number calculated from that history by a scoring model, such as FICO or VantageScore. You can have many different scores, because lenders use different models and versions, but they are all built from the information in your reports. If the report is wrong, every score built on it can be wrong too, which is why reviewing the report itself matters more than watching a single number.
There are three nationwide credit reporting companies, often called credit bureaus: Equifax, Experian and TransUnion. Lenders do not always report to all three, so your three reports can differ. That is normal, but it also means you should check each one.
How to get your reports for free
The only official site for free reports from all three bureaus is AnnualCreditReport.com. The three bureaus have permanently extended a program that lets you check your report from each of them once a week, free of charge. You can also request reports by phone at 1-877-322-8228 or by mail using the Annual Credit Report Request Form. Ordering your own report does not affect your credit score.
Be careful with look-alike websites. The official site does not require a credit card to get your free reports. If a site asks for payment information to see your “free” report, you are likely signing up for a paid product.
The five sections of a credit report
Layouts vary by bureau, but according to the Consumer Financial Protection Bureau (CFPB), every report contains the same basic types of information.
| Section | What it contains | What to check |
|---|---|---|
| Personal information | Name and past names, current and former addresses, date of birth, Social Security number, phone numbers | Misspelled names, addresses where you never lived, wrong birth date or SSN |
| Credit accounts | Credit cards, auto loans, mortgages, student loans: type, status, limit, balance, payment history, open and close dates, creditor name | Accounts you did not open, wrong balances or limits, late payments you made on time, closed accounts shown as open |
| Collection items | Debts sent to collection agencies and certain overdue child support | Debts you do not recognize, debts already paid, the same debt listed more than once |
| Public records | Bankruptcies | A bankruptcy that is not yours or is past its reporting period |
| Inquiries | Companies that have accessed your report | Applications you never made, which can be a sign of identity theft |
Hard vs. soft inquiries
A hard inquiry happens when you apply for credit and the lender reviews your report to make a decision. Hard inquiries can have a small, temporary effect on scores. Soft inquiries include checking your own report, pre-approved offers and reviews by existing creditors; they do not affect your scores. An unfamiliar hard inquiry deserves a closer look.
Reading the payment history grid
Most reports show a month-by-month grid for each account. You will typically see codes or labels such as “OK” or “current,” followed by “30,” “60,” “90” or more for the number of days a payment was late. Payment history is one of the most important factors in most scoring models, so a single mistaken late-payment mark is worth disputing.
How long information stays on your report
Accurate negative information cannot be reported forever. Under the Fair Credit Reporting Act, most negative items, such as late payments and collections, can generally remain for seven years. Bankruptcies can remain for up to 10 years. Positive information about accounts in good standing can stay longer, which is generally helpful.
A step-by-step review routine
- Pull all three reports from AnnualCreditReport.com, ideally on the same day so you can compare them.
- Start with personal information. Unknown addresses or name variations can signal mixed files, where someone else’s data has been merged with yours.
- Go account by account. Match each one with your own records: statements, payoff letters, closure confirmations.
- Check the dates. The date of first delinquency determines when a negative item should fall off. An old debt that was “re-aged” may be shown as more recent than it is.
- Review inquiries for applications you did not make.
- Make a list of every error, with the bureau, account number and what is wrong.
How to dispute an error
If you find a mistake, you have the right to dispute it with both the credit bureau and the company that supplied the information, called the furnisher. The CFPB recommends doing both.
Step 1: Dispute with the credit bureau
You can file online, by phone or in writing with each bureau that shows the error. Explain what is wrong and why, and include copies, not originals, of documents that support your case. A strong dispute letter includes:
- Your full name, address and phone number
- The report confirmation number, if you have one
- Each error, with the account number for any disputed account
- A clear explanation of why the information is wrong
- A request that the information be corrected or removed
- A copy of the relevant part of the report with the errors circled or highlighted
- Copies of supporting documents such as statements or payment confirmations
If you send it by mail, the CFPB suggests certified mail with a return receipt so you have proof of delivery. Keep copies of everything.
Step 2: What the bureau must do
The bureau must investigate, generally within 30 days, and forward your dispute and documents to the furnisher. It then reports the results to you. A bureau can decline to investigate a dispute it reasonably considers frivolous, but it must tell you within five business days and explain why.
Step 3: Dispute with the furnisher
Send a separate written dispute to the lender, collector or other company that reported the information, using the dispute address it lists. Furnishers generally must investigate and respond within 30 days. If they find an error or cannot verify the information, they must correct or delete it and notify the bureaus.
Step 4: If the item is verified as accurate
If the furnisher stands by the information and you still disagree, you can ask the bureaus to include a brief statement of dispute in your file. You can also submit a complaint to the CFPB at consumerfinance.gov/complaint. For complex cases, such as mixed files or repeated reinsertion of deleted items, a consumer attorney or a nonprofit credit counselor may be able to help.
If the error is identity theft
Accounts or inquiries you did not authorize may be signs of identity theft. In that case, the federal government’s IdentityTheft.gov site can help you create a recovery plan and an identity theft report. You can also place a free fraud alert by contacting one bureau, which must notify the other two, or place a free security freeze with each bureau to block new accounts from being opened in your name.
A note on paid “credit repair”
You can do everything described above yourself, for free. Under federal law, credit repair companies cannot charge you before they have performed the promised services, and they cannot legally remove accurate, timely negative information. Be wary of any company that promises to erase accurate history or create a “new credit identity.”
The bottom line
Check your reports from all three bureaus regularly at AnnualCreditReport.com, read them section by section, and dispute any error in writing with both the bureau and the furnisher, keeping copies of everything. Most mistakes can be fixed within about a month. This article is general education; for help with a complicated dispute, consider contacting a nonprofit credit counselor or a licensed consumer attorney.
Sources
- Consumer Financial Protection Bureau: How do I dispute an error on my credit report?
- Consumer Financial Protection Bureau: What is a credit report?
- AnnualCreditReport.com: official source of free credit reports
- Consumer Financial Protection Bureau: How do I get a free copy of my credit reports?
Featured image: Shixart1985 / Wikimedia Commons, CC BY 2.0