All About Credit Reports

 A credit report is a record of how you have paid your credit card debt and other loans. It shows whether or not you've paid your bills on time, the amount of money you owe to your creditors, and if you have loans that you have not paid back. Credit reports are compiled by three major credit reporting agencies-Equifax (www.equifax.com), Experian (www.experian.com), and TransUnion (www.transunion.com).

 Four types of information can be found on your credit report:

1. Identifying information: Your name, birth date, Social Security number, employer, and spouse's name are routinely noted. Your credit report may also include information about your employment history and previous addresses.

2. Public record and collection items: Events that are a matter of public record, such as bankruptcies, foreclosures, or tax liens, may appear in your report. Please note that bankruptcy appears on your report for ten years and information about late payments will stay on your report for seven years.

3. Trade lines/payment history: Your accounts with different creditors are listed, showing how much credit has been extended and whether you've paid on time.

4. Inquiries: A record is kept of all creditors who have asked for your credit history within the past year, and a record of those persons or businesses requesting your credit history for employment purposes for the past two years.

Your credit report does not include information about your:

                           ?   race               ?   ethnicity             ?   religion        ?   political party

                   ?   immigration status       ?   medical history     ?   income        ?   lifestyle          

Under federal law, every year you are entitled to get a free copy of your credit report from the three reporting agencies. If you find any errors you have the right to dispute inaccurate information by contacting the reporting agency. In most cases, you will need to submit a dispute letter. Click here for a sample letter: Credit Report Dispute Letter.

 Review your personal credit report at least once a year and especially before making a large purchase, like a house or car, or starting a business to make sure that there are no errors.  

 Did You Know?:

• Every time you move or change your name, you need to notify the three credit agencies. This is especially important if you are buidling credit with an ITIN.
• Information about your bank accounts and utilities payments is not included in your credit report, and as such doesn't help you to build a credit history. However, if you have made late payments on your utility bills, this information will be reported.
• Rent payments are not recorded on your credit report.
• Your credit report does not change from state to state. It can be accessed anywhere in the United States.

Tip: Go to www.annualcreditreport.com to get your free credit report. If you are denied credit, you have the right to request a free report from the agency that provided your credit report to your creditor.