Your credit report can affect more than just your ability to get a loan or credit card. Lenders, landlords, insurers, and others may use information from your credit history when making decisions. Reviewing your credit reports regularly can help you spot errors, identify accounts you don’t recognize, and get a clearer picture of your overall financial health.
Credit Report vs Credit Score
Your credit report is a detailed record of your credit history. It can include credit cards, loans, payment history, account balances, credit limits, and information about accounts that have been opened or closed.
Your credit score is a number calculated using information from your credit report. While the two are closely related, checking your credit report lets you see the underlying information that may be affecting your score.
Where Can You Get Your Credit Reports for Free?
You can get free credit reports from all three nationwide credit bureaus, Equifax, Experian, and TransUnion, through AnnualCreditReport.com. The three bureaus currently allow you to access each of your reports online for free once a week.
Be careful when searching for a “free credit report” online. AnnualCreditReport.com is the only website authorized to provide the free credit reports you’re entitled to under federal law. Other websites may require you to sign up for credit monitoring or other paid services.
Checking your own credit report does not hurt your credit score.
What Should You Look For on Your Credit Report?
You don’t need to analyze every line like a credit expert. Start by checking that the basic information is accurate and that you recognize the accounts being reported.
Pay particular attention to accounts you don’t recognize, payments incorrectly reported as late, incorrect balances or credit limits, accounts that appear more than once, and accounts that should have been closed. Also check for personal information that doesn’t belong to you.
What Should You Do If Something is Wrong?
If you find information that appears to be incorrect, you have the right to dispute it. You can contact the credit bureau showing the incorrect information and explain what you believe is wrong. You may also want to contact the company that provided the information, such as a lender or credit card issuer.
Keep copies of any documents that support your dispute and follow up to make sure the correction is reflected on your credit report.
A Few Habits That Can Help Your Credit
You don’t need complicated strategies to build and maintain good credit. Some of the most important habits are also the simplest: pay your bills on time, keep credit card balances well below their limits, and avoid applying for new credit unnecessarily.
It can also be helpful to keep older accounts open when they aren’t costing you money, since the age of your credit accounts can be a factor in your credit score. Most importantly, review your credit reports periodically so you know what lenders are actually seeing when they evaluate your credit.
MATRIX TIP
You don’t need to obsess over your credit report every week just because you can check it that often. Consider making a habit of reviewing your reports a few times each year, and check them again before applying for a major loan or making a significant financial decision. Finding an error before you need credit gives you time to get it corrected.
Additional Resources
Consumer Financial Protection Bureau: Credit Reports and Scores