Understanding Your Credit Report

There are four major types of information included in your credit report:

1. Identifying information This includes your name, phone number, address, Social Security number and date of birth. It may also include a list of your current and previous employers and your previous addresses.

2. Credit history Your credit history is a summary of your credit transactions. This is the core of the credit report. It includes your payment history, including any late payments to banks, credit card companies, retailers, and other lenders. Other lenders include mortgage and auto-finance companies. These items remain on your credit report for seven years.

3. Public records If you owe a creditor or tax agency a debt and do not pay it, expect to have a public lien against you. For example, a person who owes property taxes but does not pay them is likely to have a lien filed against him or her by the local property tax board. Public records include any filings of personal bankruptcy or court judgments against you. Bankruptcies remain on your credit report for seven to 10 years.

4. InquiriesAn inquiry is an item on your credit report that shows that a business has previously requested a copy of your report. There are two types of inquiries: hard and soft. A hard inquiry remains on your credit report, while a soft inquiry does not. Applying frequently for credit will run up the number of hard inquiries on your credit report. Some prospective lenders may interpret that as a sign of your desperation for credit.

A credit report also shows any current credit you have, including amounts owed, amounts available (such as on a credit card or other form of revolving credit), and payment amounts on installment loans.

What Type of Information Is Not on My Credit Report?

The following items are not on your credit report:

Deposit information or income Deposits that you have in banks, credit unions, or other financial institutions are assets, not debt, so they do not appear on your credit report.

Credit score Your credit score is generated based in part on the contents of your credit report. However, the score is not a part of the credit report. The credit bureaus will sell your credit score for a low price, however. We will discuss credit scores a little later.

Race, gender, ethnicity or national origin The Equal Credit Opportunity Act bans the use of this information in order to avoid any discrimination in lending practices.

Business debts If a business debt is guaranteed by you personally, it may show up on your personal credit report. If it is only guaranteed by a company, it won’t. Sample Credit Report More Helpful Information in Your Credit Report

Identify Any Errors on Your Credit Report

You should review your credit report from all three major credit bureaus at least once each year. Check for errors or omissions in any and all of the three reports. Differences may exist between the information they show and what you know about your credit history. If you find an error or something left out, contact the credit bureau directly. You can use the form letter that follows to alert the credit bureaus of errors on your credit report and ask that they be corrected.