What's Inside Your Credit Report?

By Dawn Handschuh, Personal Finance Writer Archive

What's in your credit report

 

So you thought you were through with report cards when you graduated from school? Wrong! Like the eighth-grade report card that told Mom you really didn't study for geometry, your credit report tells banks and other lenders how responsible you've been in paying your bills.

Lenders purchase borrowers' credit reports from credit reporting bureaus to help decide if they should extend credit, whether it's credit cards, mortgages, car loans, or student loans. Landlords and employers may also run credit checks to determine what kind of risk you are.

Familiarize yourself with what lenders are looking at by reviewing a free credit report annually. Your credit report contains:

  1. Personal information
    This includes basic details like your Social Security number, current and past addresses, and date of birth.
  2. Your credit history
    This contains detailed information about credit accounts in your name or accounts that list you as an authorized user. This information, reported by creditors, may include the date accounts were opened, loan balances, credit limits, and payment history. Closed and inactive accounts may also appear.
    • Inquiries — Whenever third parties (anyone other than you) pull your credit report, the credit bureau makes a notation here.
    • Public Records — Government agencies will report bankruptcies, overdue child support payments, and liens.
  3. Personal payment history
    This section summarizes your payment history for credit accounts. You'll see mortgages, installment debt, revolving accounts (such as credit cards), and accounts in collection.
  4. Public information
    This section provides details on matters of public record, such as bankruptcies, tax liens, foreclosures, or judgments.
  5. Inquiries
    This area lists businesses that have inquired about your credit during the last two years. Typically, this happens whenever you apply for credit.
  6. Creditor contacts
    Here you'll find contact information for current creditors.

Credit reports contain a wealth of personal data that can have a lasting impact on your financial household, dictating the interest rate you'll pay for loans. Every report card leaves room for improvement, so this time, don't put off the hard work for an extra hour in the playground.