You Asked
“I’ve heard that I should check my credit report regularly. What exactly is a credit report, and how do I read mine?”
Great question. Your credit report can influence everything from borrowing money to renting a home. Knowing what’s on it—and making sure that information is accurate—is an important part of taking care of your financial health.
So, What Exactly Is a Credit Report?
A credit report is a detailed record of your credit history. It contains information about accounts you’ve opened, money you’ve borrowed, balances, payment history and other activity related to your use of credit.
Lenders may use this information when deciding whether to extend credit and what terms to offer. Credit information may also play a role in some rental, employment or insurance decisions.
The three major nationwide credit bureaus are Equifax, Experian and TransUnion. Each maintains its own information, so your reports may not be identical.
What’s Inside Your Credit Report?
Credit reports contain several different types of information. Understanding each section makes the report much less intimidating.
| 01 |
Personal InformationYour name, identifying information, current and previous addresses and other details used to identify you. This information does not itself determine your credit score. |
| 02 |
Credit AccountsSometimes called tradelines, these include current and past credit cards, mortgages, auto loans and other accounts. You’ll typically see when an account was opened, the balance or loan amount and your payment history. |
| 03 |
Credit InquiriesThis section shows who has accessed your credit report. A hard inquiry generally occurs when you apply for credit, while a soft inquiry may occur when you check your own credit or when a company reviews it for another permitted purpose. |
| 04 |
Collections & Other Reported InformationAccounts that have been sent to collections or other negative information may appear on your report and can affect how lenders evaluate your credit history. |
Why Does Your Credit Report Matter?
Your credit report isn’t just a historical record. The information inside it can affect financial opportunities in your future.
Borrowing
Lenders may review your credit history when deciding whether to approve a loan or credit card and what terms to offer.
Renting
A landlord may review credit information when evaluating a rental application.
Financial Wellness
Reviewing your report gives you an opportunity to spot errors, recognize suspicious activity and understand how your credit history is developing.
Credit Report vs. Credit Score
They’re closely related, but they’re not the same thing.
Your credit report contains the detailed information about your credit history. A credit score is a number calculated using information from that history.
Think of the report as the story and the score as one way of summarizing portions of that story.
How Do I Check My Credit Report?
You can request free credit reports from the nationwide credit bureaus through AnnualCreditReport.com, the federally authorized source for free credit reports.
Got Your Report? Here’s What to Look For.
You don’t need to be a financial expert to review your credit report. Start with these four questions:
Check names, addresses and other identifying information for errors.
An account you don’t recognize could simply be an error—or it could indicate possible identity theft.
Look for incorrect balances, late-payment information or account statuses that don’t match your records.
Review hard inquiries and make sure they correspond with credit applications you’ve actually made.
Want a Healthier Credit History?
Good credit habits are built over time. The basics aren’t glamorous, but they’re powerful.
Pay bills on time.
Your payment history is an important part of your credit record, so consistent, on-time payments matter.
Be thoughtful about your balances.
Using a large portion of your available revolving credit can affect your credit profile. Keeping balances manageable can help.
Don’t apply for credit you don’t need.
Multiple hard inquiries within a short period can affect your credit profile.
Check your reports regularly.
Monitoring your reports can help you identify mistakes and suspicious activity sooner rather than later.
Don’t Ignore Something That Looks Wrong
An unfamiliar account could be more than a typo.
If you discover an account or inquiry you don’t recognize, investigate it promptly. Regular credit-report reviews can be an important tool in identifying possible identity theft or fraud.
Know Your Financial Story
Your credit report doesn’t define your financial future—but understanding what’s in it gives you valuable information to help shape what comes next.
Check your information, correct mistakes when you find them and keep building healthy financial habits one decision at a time.
AGCU — Banking with a Purpose.