Your credit report is a record of how you have used credit. Your credit score is a number calculated from that report. Together they affect whether you can get a loan, rent an apartment, or sometimes get a job. This page explains how they work, what affects them, and how to protect yourself.
What is in your credit report
Your credit report shows:
- Accounts - credit cards, loans, and lines of credit, including balances, credit limits, and payment history
- Payment history - whether you paid on time, late, or missed payments entirely
- Negative marks - collections, bankruptcies, foreclosures, and judgments
- Inquiries - who has recently checked your credit
Lenders, landlords, insurers, and some employers may review your credit report before making decisions about you. Reviewing your own report regularly helps you catch errors.
Get your free credit report
You are entitled to free credit reports from each of the three major credit bureaus - Equifax, Experian, and TransUnion. You can now check them weekly at no cost.
The only federally authorized source to obtain your credit report is AnnualCreditReport.com. Other sites that offer credit reports may charge.
Checking your own credit report does not affect your credit score.
- Get your free credit reports - AnnualCreditReport.com
Understanding your credit score
Your credit score is a number, typically between 300 and 850, calculated from the information in your credit report. The higher the number, the lower the risk you appear to lenders.
The two most widely used scoring models are FICO and VantageScore. You may have slightly different scores from each, which is normal.
As a general guide for FICO scores:
- 800 and above - exceptional
- 740 to 799 - very good
- 670 to 739 - good
- 580 to 669 - fair
- Below 580 - poor
How your credit is scored:
- Payment history - Paying on time consistently helps your credit score.
- Amounts owed - how much of your available credit you are using, called your utilization rate.
- Length of credit history - older accounts and a longer track record work in your favor.
- Credit mix - having different types of credit, such as a credit card and an installment loan, can help.
- New credit - applying for several new accounts in a short period can temporarily lower your score.
Many banks and credit card companies provide free access to your score through your online account or monthly statement. You can also purchase your credit score from the three major credit bureaus.
Building and improving your score
The most reliable ways to build or improve your credit score over time:
- Pay every bill on time, every month. Even one missed payment can impact your score.
- Pay down balances. Reducing what you owe relative to your credit limit can raise your score.
- Avoid opening several new accounts at once.
- Check your credit report for errors and dispute anything inaccurate.
Fix errors on your credit report
Errors on credit reports are more common than most people expect. If you find something wrong, you have the right to dispute it.
Dispute the error with both the credit bureau that reported it and the company that supplied the information. Federal law generally requires them to investigate within 30 days.
Put your dispute in writing, include copies of any documents that support your case, and keep records of everything you send and receive.
- Sample dispute letters - Consumer Financial Protection Bureau
Protect your credit from fraud
If you are concerned about identity theft, two tools are available at no cost under federal law.
A fraud alert tells lenders to take extra steps to verify your identity before opening new credit in your name. It lasts one year and can be renewed.
A security freeze blocks access to your credit report entirely, which prevents new accounts from being opened. You can lift it temporarily when you need to apply for credit. A freeze does not affect your existing accounts or your credit score.
- Credit freezes and fraud alerts - Washington State Attorney General
If you are denied credit or insurance
If a lender or insurer turns you down, or offers you worse terms than you applied for, federal law gives you the right to know why. You are also entitled to a free copy of the credit report used to make that decision if you request it within 60 days.
A creditor cannot base that decision on your race, sex, marital status, national origin, or religion.