Common Questions about your Credit Report
We all know that we must stay on top of our credit to maintain a strong FICO score, but how many of us actually do just that?
Your ability to obtain a mortgage, purchase a car or secure a credit card all relies on your credit rating. It is therefore of the utmost importance that you order a copy of your credit report.
Luckily, under the nationwide Fair Credit Reporting Act (FCRA), which is protected by the Federal Trade Commission (FTC), you are entitled to a free copy of your credit report from all three of the consumer reporting agencies – Equifax, TransUnion and Experian – once a year.
Now that you are armed with this information, you can begin the process of reviewing your credit report.
Q: What type of information appears on my credit report?
A: Your credit report should contain your personal information, such as your name, your address and your source of income, as well as all sources of credit. It will also report any bankruptcies, arrests or cases in which you were sued.
Q: What is a typical credit report comprised of?
A: The four sections of a standard credit report include: your personal, or identifying, information; your credit history; public records; and inquiries.
Q: What are public records?
A: Public records include such things as bankruptcies and law suits.
Q: What are inquiries?
A: Every time you apply for credit of any kind, it is typically recorded as an inquiry. Excessive inquiries do not look very good in the eyes of a creditor; therefore, too many inquiries can lower your credit score.
Q: Do I need to look at my credit report through all three credit reporting agencies, or is the information the same?
A: Each credit reporting agency has their own set of information, as well as their own credit rating for you, so it is important to review your credit report through all three credit reporting agencies.
Q: Who uses the information on my credit report?
A: The three credit reporting agencies – Equifax, TransUnion and Experian – sell this information to creditors, insurers and even your employer. They then use this information to determine your eligibility for credit cards, insurance and employment, among many other things.
Q: What if I find a mistake on my credit report?
A: If you find a mistake or an inaccuracy, you must immediately contact the credit reporting agency and file a report. It is then the credit reporting agency’s duty to research the problem and correct it, if needed.
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