Reviewing your Credit Reports

Your credit reports, which are kept by three major credit bureaus in the United States (TransUnion, Experian, and Equifax) contain important information about you and your credit such as:

• Identifying information (name, date of birth, Social Security number, addresses, employer, phone number, spouse's name)
• Your credit accounts, including creditor name, account numbers, type of credit, and when you opened each account
• Other names on the accounts, if applicable
• Fixed monthly payments or minimum monthly payments
• Account status
• Your promptness in paying
• Charge-offs (defaults), if applicable
• Public records, including bankruptcies, tax liens, and financial judgments against you
• "Hard" inquiries (made when you apply for credit)
• "Soft" inquiries (made by companies sending promotional material, such as credit card offers)

Who Looks at your Credit Reports?

Lenders aren't the only ones who look at your credit reports, though they are the most common. Your credit reports may also be viewed by:

• Landlords
• Government licensing agencies
• Insurance companies
• Some employers

Another person who should look at your credit reports is you, so you can identify errors and have them corrected.

How do you Get Copies of your Credit Report?

The website AnnualCreditReport.com is the source for the free annual credit report that you're entitled to by law. You can get one copy per year from each credit bureau. While other private agencies offer access to your credit reports, they often charge fees, or force you to sign up for services you don't want in order to have access to them. You can download your free copies of your credit report from AnnualCreditReport.com, or phone them and have copies sent to you. Be aware that your credit score, the three digit "grade" you're assigned based on your credit history is not included with your free credit reports. Generally you have to pay for that information, though lenders will sometimes tell you your score when you apply for a loan or credit.

What if you Find Mistakes?

Common mistakes found on credit reports include:

• Accounts you don't remember opening
• Inaccurate credit limits on credit card accounts
• Inaccuracies in your employment history
• Duplicate accounts
• Negative information that's more than seven years old

When you find a mistake on your credit report, contact the credit bureau that made the report. Each of the three has procedures for resolving inaccurate information, and they are required to investigate any problems you point out.

Why you should Monitor your Credit Reports

A mistake could needlessly hold your credit score down, making it harder to get a loan, or increasing the interest rates you'll be required to pay. An accurate credit history is the starting point for increasing your credit score. Another important reason for keeping track of information on your credit reports is to ensure that you're not the victim of identity theft. If someone has stolen your identity and taken out credit cards or other credit in your name, it will show up on your credit report. Identity theft can ruin your credit, so it is important to report any suspicious information immediately.

Sources:

http://www.fivecentnickel.com/2011/04/04/reviewing-your-credit-report-five-potential-problems/
http://www.bankrate.com/finance/personal-finance/how-to-read-and-understand-your-credit-report-3.aspx
http://www.ftc.gov/bcp/edu/microsites/freereports/index.shtml
https://www.annualcreditreport.com/cra/index.jsp
http://www.mappingyourfuture.org/money/creditreport.htm