If you plan on applying for a new credit account, maybe even an apartment, your credit report will play a big role in whether you get approved or not.

Checking your credit report can help you find errors that might be lowering your score. It can also help you spot signs of identity theft, like credit accounts you didn’t open yourself.

This guide will explain what information is included in your credit report and what you should look out for when reviewing each section of your report.

Table of contents

What is a credit report?
How to read your credit report
Disputing any errors you find
Understanding your credit report FAQs

What is a credit report?

A credit report is a detailed summary of your credit history. It includes key details such as your payment history, account balances, credit checks and any public records like bankruptcies.

Credit reports are compiled by the three major credit bureaus: Equifax, Experian, and TransUnion. These agencies gather and organize data from your creditors and lenders, providing a comprehensive view of your credit activity.

These reports are essential in various financial matters, such as when you apply for loans and credit cards.

What information is included in your credit report?

Your credit report will usually include the following information:

Personal information

Full name
Former names
Phone numbers
Date of birth
Social security number
Home address
Employers

Credit accounts

Open and closed accounts
Name of your creditors
Payment history
Account type
Credit limits or loan amounts
Outstanding balances
Account opening and/or closing date
Account status

Public records

Bankruptcies
Home foreclosures

Inquiries

Hard inquiries
Soft inquiries

Who uses the information on your credit report?

Banks, credit card companies and other lenders use your credit report to assess your creditworthiness — in other words, how well you manage debt. This helps them determine whether to approve your credit applications and what interest rates and other loan terms they’ll offer you.

Landlords and insurance providers may also review your credit report when deciding to rent you an apartment or set your insurance rates. Some employers might also check your report, especially if you’re applying for roles in finance

How to read your credit report

While each of the main credit bureaus uses a slightly different format to organize their credit reports, they all include similar sections.

Here’s what you should look out for when reading your credit report:

Personal information

Your credit report will most likely start off with a personal information section. This section is simply meant for identification purposes and doesn’t directly impact your credit score.

Keep in mind you might come across different versions of this information, such as your full name with or without your middle initial. Other variations, such as married or maiden name, might also show up. These differences happen because lenders report all the personal information they have gleaned from your credit applications, whether old or new.

While slight differences on your personal information are normal, you should keep an eye out for phone numbers, employers, addresses or any other details you don’t recognize. These might signal identity theft — especially if you also find credit accounts you don’t remember opening.

Credit accounts

This section lists all of your existing credit accounts, such as credit cards, personal loans and mortgages. You’ll also find closed accounts in good standing that were active within the last 10 years. Each account listed will include information such as payment history, account type, outstanding balances and credit limit.

Your payment history may be displayed in a grid format, showing each month and whether the payment was made on time or late. If a payment was late, the grid will show how many days it was overdue — 30, 60, 90, or more — and may be highlighted in red.

When reviewing this section, look out for errors like on-time payments mistakenly reported as late or incorrect balances. (Keep in mind that it can take up to 30 days after you pay your bill for the balance to be updated on your credit report.) You should also keep an eye out for accounts you don’t remember opening.

Negative accounts

Collection accounts are usually listed on a separate section of your credit report and will include information such as the date the account went into collections, the owed amount and name of the collection agency and original creditor. Bankruptcies are also listed separately under a public records section.

These negative accounts stay on your credit report for seven years, except for Chapter 7 bankruptcy which is reported for 10 years. If you spot an account that shouldn’t be included in these sections, contact your creditor and the credit bureaus immediately, as these significantly lower your credit score.

Inquiries

Your credit report will also include a list of credit inquiries, which are instances when someone has checked your report. Credit inquiries might be separated by type: soft inquiries and hard inquiries.

Soft inquiries are not related to formal credit applications, so they don’t impact your credit score. Some examples of these are when you check your credit report through free credit monitoring services or when a creditor checks your credit history to send you pre-approved credit card offers.

Hard inquiries are credit checks carried out by a potential lender as part of an application for credit. This type of credit inquiry does impact your credit score, but only by a few points and for a short period of time.

When checking this section, make sure you recognize all of the inquiries listed. Also, note that inquiries older than two years should be removed from your report.

Disputing any errors you find

A study by the Federal Trade Commission (FTC) revealed that one in four consumers found errors on their credit reports that might lower their credit scores. If those mistakes aren’t fixed, they can lead to higher interest rates and trouble getting approved for loans or credit cards.

Under the federal Fair Credit Reporting Act (FCRA), you’re entitled to an accurate and fair credit report. So, if you spot anything that’s wrong or outdated, you can dispute it with the credit bureaus.

Here are the steps you should take:

1. Get a copy of your credit report

You can request free copies of your credit reports through AnnualCreditReport.com. Through this website, you’ll have access to one free copy per week from TransUnion, Equifax and Experian.

You’ll need to verify your identity by providing some personal information, like your name and social security number. Additionally, you’ll answer a series of questions that only you should be able to answer, such as an old address or the name of one of your creditors.

For more detailed information, you can check out this guide on how to check your credit report.

2. Review your credit report carefully for errors

The information on your credit report should be accurate and up-to-date. Look out for payments incorrectly labeled as late, accounts you don’t recognize and hard inquiries you didn’t authorize, for example. Negative items, like late payments or collection accounts, shouldn’t be reported on your credit accounts if they’re older than seven years.

3. Dispute any errors you find

We have a detailed guide on how to remove negative items from your credit report. But in a nutshell, you can dispute your credit report online here:

Equifax
Experian
TransUnion

You can also file a dispute through mail or calling the credit reporting agencies.

The bureaus have 30 days to look into your claim and will let you know what they find within that time. You’ll get their response either by mail or email, depending on how you submitted your dispute. Keep in mind that it may take more than one dispute to get errors removed from your credit report, especially if the bureaus require additional evidence to verify your claim.

Disputing your credit report is free, but it might take a while if you have a lot of errors listed. In this case, you can consider hiring a credit repair company. Just be cautious of those that claim they can erase all negative information from your credit history, even the one that’s accurate.

How to read your credit report FAQs

Why is it important to check your credit report?

When you apply for credit cards and loans, creditors use your credit report to decide whether you qualify or not. Your report is also used to determine your interest rates, credit limits and loan amounts. A single error on your report, like a payment incorrectly labeled as late, could lower your credit score by around 100 points and affect the credit offers you can get approved for. Also, the information on your credit report could even impact your chances of getting an apartment or the cost of your insurance premiums.

When do credit reports update?

Your credit reports are updated at least once per month when your lenders and creditors send over your credit usage and payment information to the credit reporting agencies (Equifax, Experian and TransUnion).

What information is not found on your credit report?

Your credit report will not include information regarding your salary or marital status. It also won’t mention any other financial accounts that aren’t credit-related, such as checking, retirement or brokerage accounts.

How often should you check your credit report?

The Consumer Financial Protection Bureau (CFPB) recommends checking your credit report at least once per year. However, if you’ve been a victim of identity theft, you might benefit from reviewing your report more often, say, once every three months. This could help you spot fraudulent accounts early and help deter any damage to your credit score and finances.

What should you look for on your credit reports?

When reviewing your credit report, make sure your payments are reported accurately since your payment history is the most important credit scoring factor. Double-check your credit limits, outstanding balances and the opening and closing dates for each account, as these can impact your credit utilization ratio and credit age. You should also be on the lookout for accounts you don’t recognize since these are a potential sign of identity theft.

The Money.com reports that if you are planning to apply for a new credit account or even an apartment, your credit report will play a crucial role in determining your approval. In fact, checking your credit report can help you identify any errors that may be negatively affecting your credit score. It can also help you detect signs of identity theft, such as unauthorized credit accounts.

But what exactly is a credit report? According to The Money.com, a credit report is a detailed summary of your credit history. It includes important information such as your payment history, account balances, credit checks, and any public records like bankruptcies. This report is compiled by the three major credit bureaus – Equifax, Experian, and TransUnion – who gather and organize data from your creditors and lenders to provide a comprehensive view of your credit activity.

So, what information can you expect to find in your credit report? The Money.com explains that your credit report will typically include personal information such as your full name, former names, phone numbers, date of birth, social security number, home address, and employers. It will also list your credit accounts, both open and closed, including the name of your creditors, payment history, account type, credit limits or loan amounts, outstanding balances, and account opening and closing dates. Additionally, any public records like bankruptcies or home foreclosures will be included in your report.

But who uses this information? According to The Money.com, banks, credit card companies, and other lenders rely on your credit report to assess your creditworthiness and determine whether to approve your credit applications. Landlords and insurance providers may also review your report when making decisions about renting you an apartment or setting your insurance rates. In some cases, employers may also check your credit report, especially for roles in finance.

So, how do you read your credit report? The Money.com advises looking out for the following sections: personal information, credit accounts, and public records. While each credit bureau may have a slightly different format, these sections will be present in all reports. The personal information section is simply for identification purposes and does not affect your credit score. It is common to see variations in your name or other details, such as your middle initial or maiden name. The credit accounts section is where you can review your payment history, account balances, and other important details. Finally, the public records section will list any bankruptcies or foreclosures.

In case you find any errors in your credit report, The Money.com recommends disputing them with the credit bureau. Understanding your credit report is crucial for maintaining a good credit score and ensuring your financial health. For more information, check out the FAQs section on The Money.com. 

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