Simply put, a credit report is a history of your credit payments. Everyone who has ever owned a credit card or taken out a loan has one, and they can be one of your most beneficial tools where credit is concerned. Credit reports have become so important in recent years that employers have begun using them as screening tools, and some insurance companies utilize them to assess risk.

A plethora of information is contained in a credit report including identification information, such as your name and address; public record information, like court ordered payments and bankruptcy claims; other credit history, like loan & credit card payments; and inquiries, when credit companies request a copy of your credit report. Information that is not on your credit report includes your race, ethnicity, religion, medical records, and the balances of your checking and savings accounts.

Maintaining a positive credit report is simple. Making regular, on-time payments on all loans and bills will create a positive credit report. Late payments, defaulting on a loan, and similar damaging information can negatively impact your credit report. Having too many credit inquiries in too short a time can also hurt a credit report. Information recorded on your credit report remains on your history for years. Credit inquiries remain on record for two years, late payments and defaults remain on your credit report for as long as seven years and bankruptcy can last for ten years.

The worst possible credit report may be not having one at all, so starting a credit history as early as possible is very good idea. Getting and properly using a gas or department store credit card is an excellent way to start a credit report.

Credit bureaus are the businesses that keep and maintain credit reports. In the United States, there are three; Experian, Equifax, and TransUnion. When checking your credit report, it is important to know this because the information each keeps may differ. A law passed in 2003 requires credit bureaus to provide you with a free copy of your credit report once every twelve months. Further details can be found at the Federal Trade Commission’s website: http://www.ftc.gov/bcp/conline/pubs/credit/freereports.htm.

The most important use of the credit report is in determining your credit score, what lenders check before granting you a loan. This number is sometimes referred to as the Fair, Isaac or FICO. A number of factors affect your credit score, but two are the most valuable. The first is your history of loan payments. On time payments positively affect your score while late or missed payments damage it. The second factor is how much debt you currently owe. Larger debts lower your credit score. Credit scores range from the 300’s to the 900’s, with scores greater than 720 being considered good. Higher credit scores will result in a lower interest rate and larger possible loan amount, while low credit scores will lead to significantly higher interest rates or even turned down loan applications.

If your loan application is turned down because of your credit report, it is your right to receive a copy of it and written explanation. If there is an error on your credit report, you can contact the credit bureau and work with them to eliminate it.
Contact www.annualcreditreport.com or:

Credit Reporting Agencies

Equifax - www.equifax.com
To order your report,
call: 1-800-685-1111
or write: P.O. Box 740241
Atlanta, GA 30374-0241.

To report fraud,
call: 1-800-525-6285
and write: P.O. Box 740241
Atlanta, GA 30374-0241

Experian - www.experian.com
To order your report,
call: 1-888-EXPERIAN (397-3742)
or write: P.O. Box 2104
Allen, TX 75013

To report fraud,
call: 1-888-EXPERIAN (397-3742)
and write: P.O. Box 9532
Allen, TX 75013

Trans Union - www.tuc.com
To order your report,
call: 1-800-916-8800
or write: P.O. Box 1000, Chester, PA 19022

To report fraud, call: 1-800-680-7289
or write: Fraud Victim Assistance Division
P.O. 6790, Fullerton, CA 92834

If you’ve been a victim of identity theft,
file your complaint with the
Federal Trade Commission:
Identity Theft Hotline:
Toll-free 1-877-438-4338
TDD: 202-326-2502
By mail:
Identity Theft Clearinghouse
Federal Trade Commission
600 Pennsylvania Avenue, NW
Washington, DC 20580
Online: www.consumer.gov/idtheft