What is a Credit Report?

Danh Truong
Jun 27, 2016
2 min read

A credit report contains your personal information, status of your credit accounts, and loan payments history. It also has public information about you, credit inquiries, and contacts for dispute in case you find incorrect information.

Lenders use these reports to make lending decisions. It is important to know your credit report for the following reasons:

Having a reality check on your information. Are all personal information such as name, addresses, and loan payment history correct?
Being prepared when you apply for a job, rent an apartment, buy a car or a house.
Having a record of your credit report to develop a plan to improve your score.

So, how can you get your credit report? The only place that will give your credit report is www.annualcreditreport.com

There are three credit reporting agencies:

Equifax
Experian
Trans Union

According to the Federal Trade Commission, “AnnualCreditReport is the only authorized online source for your free annual credit report from the three nationwide credit reporting companies.”

You can get your credit report for free, annually, from each of these three agency.

DANH'S TIPS: Only get your credit report from ONE agency at a time. This way, you can keep track and monitor your report better. For example, you can get your report from Equifax in January and then later on, you can get it from Experian in May. Lastly, you will get your report another time in September from Trans Union.

Here are some facts about your credit report:

Your report changes over time. You can improve your report and score with proper planning.
The longer you have your report on file, the better your credit worthiness.
Your credit worthiness is determined by ASAP:
Ability - Do you have the income to repay the loan?
Stability - How long have you held your current job? How long have you lived at your residence?
Assets - What do you own?
Performance - How have you handled your credit/debt/loan?

Let me know if you have any question by sending me an email at danh@eq1re.com. If you find this post is helpful, please subscribe to Chopsticks Alley.