Whether you like it or not, you’re constantly being watched. Every time you use your credit card, apply for a cell phone, open up a bank account, someone is keeping track of all this information. Someone is watching you, keeping all that information on hand, waiting to tell anyone who asks whether or not you are credit worthy. Who’s keeping track of all this information? Equifax, Experian, and TransUnion – the three main credit reporting agencies. Your entire credit history is commonly referred to as your credit report.
The credit report is the backbone of your credit rating. Here you’ll basically find an entire history of your credit profile. Basic things like your name and current address, as well as any previous addresses that may be on file. You’ll also see a listing of all debt accounts you’ll have, such as bank accounts and credit cards. Things like mortgages, student loans, and bank loans will also be listed.
Account information is fairly specific, and includes the lender, your current balance, and total credit limit. You’ll also find payment histories that generally last at least 72 months. That means any late payments and delinquent accounts will be clearly noted. Finally, if you have any bankruptcies or offers in compromise on your record, this will also be in your credit report.
If you’ve never seen your credit report before, know that you are legally obligated to receive your credit report once a year from each of the three credit reporting agencies. You do NOT have to pay for this! This is your right as an American consumer – there are many companies out there who will try to charge you for this free service. All you need to do is request your report from each agency – most will have forms that you can fill out online to get your credit report immediately.
Credit reports aren’t perfect – they’ll often contain errors such as incorrect addresses, old accounts, balances that have been paid off, etc. If you notice an error on your credit report, contact the agency that issued the report. They’ll follow up with the creditor and see if the information is legit.
Having an excellent credit report will tell potential lenders that are you fiscally responsible. But increasingly, credit reports aren’t just being accessed by potential lenders. Even potential employers are starting to pull credit reports before employing an individual. If a person can’t be responsible with something as important as their own finances, how good could they possibly be at work? This is why you need to maintain a good credit report – you never know who’s looking.