Credit Reports 101

For many of us, our credit may feel like a vague and abstract concept; however, understanding our credit history, credit scores, and credit reports are an important foundation to our adult lives.

Your credit history determines if you are eligible for loans and what rates you pay. Want to buy a house? Looking to get a car? Credit history will determine mortgage rates, auto loan rates, and more. It's important to understand how they work and what to know about them. First things first, let's talk about your credit report. 

What does my credit report show? 

Your credit report shows things like whether you pay your bills on time, whether any debts have been turned over to creditors and which lines of credit you have. Many people use this report (creditors, insurers, some employers) to decide which terms they will offer you. 

How do you get your credit report?

As of 2020, you can get free credit reports weekly from each of the major agencies. You used to only be able to pull this report for free annually so this is a big change!! Go to annualcreditreport.com to request free copies of your credit reports from the three major bureaus: Equifax, Experian, and TransUnion. 

What should you review?

Mistakes happen! Review your credit report thoroughly to ensure the personal information and financial information is accurate. If information is on there that doesn't pertain to you that can hurt your credit. It's a lot easier now to report an inaccuracy than it used to be; usually, you can easily dispute an issue online. Inaccuracies could also be a marker of fraud or identity theft so be sure to take the proper steps to dispute and report any issues. 

Your mission, should you choose to accept it, is to get your credit report from each of the three nationwide credit bureaus and review it. Buckle up, get down to work and let me know how it goes. Good luck!

Stay tuned next time for more on credit history!