Understanding how credit reports and scores work is an essential financial skill. Below, we have helpful resources and information that can help you understand credit reports and scores.
How Your Credit Is Reported
Your credit report is a detailed breakdown of your credit history based on information provided to the US's three primary national credit bureaus – Equifax, Experian, and TransUnion.
You have a different credit report at each of the three credit bureaus.
Various entities, such as lenders, insurance companies, employers, utility companies, and landlords, check your credit report to look at how you use credit.
Getting Your Free Credit Report
You are entitled to a free annual report from Experian, Equifax, and TransUnion. Obtain your credit report at AnnualCreditReport.com. In addition, the three bureaus have permanently extended a program that lets you check your credit report once a week for free.
Understanding Your Credit Score
Your credit score is a number between 300 and 850 based on information found on your credit report.
FICO and VantageScore are the most common credit scores used by lenders.
Your credit score is primarily based on how well you have made payments, but there are other factors, such as how much you have borrowed, how many accounts you have, and if there have been a lot of recent credit applications.
Correcting Errors
Credit reports do occasionally contain errors. If you notice an error, contact the credit bureau right away. The errors could be impacting your credit score.
Additional Resources
- AnnualCreditReport.com
Free annual credit report - Resolving Errors on Your Credit Report
Information from the Consumer Financial Protection Bureau. - FAQs About Credit Reports
Answers from the Federal Trade Commission - Experian
Credit reporting bureau - Equifax
Credit reporting bureau - TransUnion
Credit reporting bureau