Credit Reports
A credit report is a record of a consumer's credit history, compiled by nationwide credit reporting companies. Federal law governs what may be included, who may access it, and how errors are disputed.
What a Credit Report Is and Who Compiles It
A credit report is a detailed record of a consumer's credit history. It is compiled by nationwide credit reporting companies, which are private businesses that collect information from lenders, creditors, and public records. The three largest nationwide credit reporting companies are Equifax, Experian, and TransUnion. Each maintains separate files, so a consumer may have different reports from each company.
Credit reports are used by lenders, landlords, insurers, and employers for purposes allowed by law. The Fair Credit Reporting Act (FCRA) is the federal law that governs how credit reporting companies collect, share, and protect this information. The FCRA also gives consumers the right to access their reports and to dispute inaccurate information.
What Information Appears in a Credit Report
Credit reports typically include identifying information such as name, current and previous addresses, Social Security number, and date of birth. They also list credit accounts, including the type of account, date opened, credit limit or original loan amount, balance, and payment history. Public records such as bankruptcies may appear. Inquiries show which parties have requested the report.
Not all information is included. The FCRA restricts the reporting of certain items and prohibits reporting of obsolete information beyond specified timeframes. Medical debts have specific reporting rules. Accuracy matters because the report is used to evaluate applications.
- Identifying information: name, current and previous addresses, Social Security number, date of birth, and employment information.
- Credit accounts: credit cards, retail accounts, installment loans, mortgages, and vehicle loans, with payment history and balances.
- Public records: bankruptcies, and in some cases, civil judgments or tax liens if they meet reporting criteria.
- Inquiries: a record of parties that have accessed the report, including lenders and potential employers.
How to Obtain Credit Reports
Under the FCRA, consumers are entitled to one free credit report from each nationwide credit reporting company every twelve months. The official website to request these free reports is AnnualCreditReport.com, which is authorized by federal law. Consumers can also request reports by phone or mail through the same service.
Additional free reports may be available in certain situations, such as after a fraud alert or identity theft, or if a consumer is denied credit based on information in a report. Some states have laws that provide additional free reports. Credit reporting companies may also offer paid products, but the free annual reports are available without a fee.
Consumers can request reports from all three nationwide companies because each file may contain different information. Requests may be spaced throughout the year to review files more frequently.
Who Can Access a Credit Report
Access to credit reports is limited by the FCRA. Credit reporting companies may provide reports only for permissible purposes. These include applications for credit, employment, insurance, rental housing, and certain government licenses or benefits. A court order or subpoena may also require disclosure.
When a party requests a report for a permissible purpose, an inquiry is added to the file. Inquiries may be classified as hard or soft. Hard inquiries typically result from a consumer's application for credit and may be visible to others. Soft inquiries, such as those from a consumer's own request or pre-approved offers, are not visible to lenders.
Employers must obtain written permission before accessing a credit report for employment purposes. The FCRA also allows consumers to place a security freeze or fraud alert to restrict access.
How Long Information Stays and How to Dispute Errors
The FCRA sets time limits for how long most information may remain on a credit report. Bankruptcies may be reported for up to ten years from the date of filing. Most other negative information, such as late payments, collections, or charge-offs, may be reported for seven years. Positive information may remain indefinitely.
If a consumer believes a report contains inaccurate or incomplete information, the FCRA gives them the right to dispute it. A dispute can be filed with the credit reporting company and with the company that furnished the information. The credit reporting company must investigate, usually within thirty days, and correct or delete information that cannot be verified.
Disputes can be submitted online, by mail, or by phone, depending on the credit reporting company. Supporting documents may be required. Consumers can also file a complaint with the Consumer Financial Protection Bureau or the Federal Trade Commission if a dispute is not resolved.
Credit Reports Compared with Credit Scores and Security Freezes
A credit report and a credit score are distinct. The report is a record of credit history; a score is a number calculated from information in the report using a scoring model, such as FICO or VantageScore. Scores are not included in the free annual reports from AnnualCreditReport.com, though some credit reporting companies may provide scores separately.
Consumers can place a security freeze on their credit reports, which restricts access to the file for most purposes. A fraud alert requires businesses to take reasonable steps to verify identity before extending credit. Both are free under federal law. The FCRA and other laws govern these protections.
The credit reporting system is regulated at the federal level, with enforcement by the Federal Trade Commission, the Consumer Financial Protection Bureau, and state attorneys general. Consumers have the right to accurate reports and to know who has accessed their information.
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Frequently asked questions
What is a credit report?
A credit report is a record of a consumer's credit history compiled by nationwide credit reporting companies. It includes account information, payment history, public records, and inquiries.
How can I get a free copy of my credit report?
Consumers can request one free report from each nationwide credit reporting company every twelve months through AnnualCreditReport.com. This site is the only federally authorized source for the free annual reports.
What information is included in a credit report?
Credit reports generally include identifying information, credit accounts, payment history, public records such as bankruptcies, and a list of inquiries. Not all information is reported, and time limits apply under the Fair Credit Reporting Act.
How long does negative information stay on a credit report?
Most negative information, such as late payments and collections, may remain for seven years. Bankruptcies may remain for up to ten years. Positive information may remain indefinitely.
What is the difference between a credit report and a credit score?
A credit report is a detailed record of credit history, while a credit score is a number calculated from that record using a scoring model. The free annual reports from AnnualCreditReport.com do not include credit scores.
Sources
Guides in this topic
What Is a Credit Report?
A credit report is a detailed record of your credit accounts and payment history. It is compiled by national credit reporting companies and used by lenders, landlords, and others to evaluate applications.
Annual Credit Report: Free Reports Under Federal Law
The annual credit report right comes from the Fair Credit Reporting Act, which requires each nationwide credit reporting company to provide a free file disclosure every 12 months on request. This guide explains where the request is made, what each report contains, and how disputes, freezes, and fraud alerts work.
Free Credit Report: What It Is and How to Request One
A free credit report is a disclosure of your credit history that federal law entitles you to request at no charge. This guide explains who provides it, what it contains, and what to look for when you read it.
How to Read a Credit Report
A credit report is a detailed record of how you have managed credit accounts, and each section answers a different question about that history. Reading it in order, from identifying information through account history and inquiries, makes the document far easier to interpret.
How to Check Your Credit Report
Federal law gives consumers the right to obtain a free file disclosure from each of the three nationwide consumer reporting companies. Knowing which identifiers are required and which sources are official makes the process straightforward.
What a Credit Bureau Is and How Your File Is Built
A credit bureau is a company that gathers information about how consumers use credit and sells that information to businesses with a legal reason to see it. This guide explains who these companies are, how records are assembled, and what federal law says about them.
Related terms
- 3 Credit Bureaus The 3 credit bureaus are the three largest nationwide consumer reporting companies in the United States: Equifax, Experian, and TransUnion.
- Annual Credit Report The Annual Credit Report is the free file disclosure that the nationwide consumer reporting companies must provide to consumers upon request, coordinated through AnnualCreditReport.com.
- Credit Bureau A credit bureau, more formally known as a consumer reporting agency, is a company that gathers information about consumers' credit and payment history and sells it in the form of credit reports to lenders, landlords, employers, and other parties with a permissible purpose.
- Credit Report A credit report is a record of a consumer's borrowing and repayment history, maintained by a credit reporting company, that lists credit accounts, balances, payment history, collection accounts, bankruptcy filings, and inquiries made by businesses that have a permissible purpose to see it.
- Free Credit Report A free credit report is a no-cost copy of a consumer's credit file, either a file disclosure the consumer is entitled to under federal law or a report a company provides as part of its own product or trial offer.