Online Credit Report
Your credit report - also known as a "credit history" or "credit file," contains personal information about you, which is gathered from many different sources on an ongoing basis. The majority of lending institutions that have given you a loan or a line of credit will have provided information to the three major credit report agencies.
As the information in your file changes on a continual basis, it is very wise to have a look at your credit report annually, to be sure of its accuracy. After all, future lenders will be checking this information, and using it to make decisions based on its contents.
Information that is included in your report will generally be:
- Your first, middle and last name, as well as any other versions of your name that you use, and nicknames.
- Your Social Security number
- Your birth date
- Your address
- Any previous addresses you may have had
- Your employment information, both current, and from the past.
- Credit accounts and history
- Public records such as liens, bankruptcies, civil judgements, etc.
- The inquiries that have previously been made into your account (for a maximum of two years)
But most importantly, your credit report has record of your credit card, mortgage, loan and other repayment histories of loans and lines of credit.
A credit report does not, however, include information about your checking or savings accounts. It also does not include information such as gender, ethnicity, religion, political affiliation, medical history or any criminal records.
Your credit score is generated by information which is available within your credit report, though it is not part of the report itself.
Lenders check this information to see if you have missed payments, if you carry high balances, or if you have over-extended yourself in any other financial way. The payment history element of your credit report is the most vital to your records. This is another reason that it's critical to pay your bills on time - even if you can only cover the minimum balance every month.
The reason that lenders check this information, is to evaluate the risk of lending you money, based upon information in your credit report. This is another reason that it is wise to periodically check your report for inaccuracies, so that you will be well aware of what impact your report will have on your ability to acquire a loan or a line of credit.
The three major credit reporting agencies in the United States are: Equifax, Experian (formerly known as TRW) and TransUnion. These are the primary companies which maintain information about you and your credit history. These will be the companies contacted by lenders, employers, landlords and other service providers, for decision making, credit card acceptance, employment, housing and loan approval.
As this information is highly private and extremely important, these agencies are regulated by the Federal Trade Commission.
Your credit score is a rating which is used by lenders to help establish whether or not you will qualify for a particular credit card, loan, service or other financial matter. The company will obtain the information though a credit report, and this information is then analyzed using a complex mathematical model to yield your credit score.
Most credit scores will estimate the risk that a company will incur by lending you money or providing you with a service (such as employment). This risk is specifically based on the likelihood that you will fail to make your payments within the next two to three years. The higher your credit score, the less of a risk you represent. Many different lending institutions will consider your credit score along with other factors, such as your annual income, and how long you have held your current job.
Your score will vary according to the different scoring models which are used by the lending institutions, and the different information which is stored by each reporting agency.
There are many different formula's which are used to calculate your credit scores, but they are primarily based on similar factors. These factors will be weighed differently by individual lending institutions, but will generally include:
- Payment history: a record of any late payments on your current and past credit accounts. Any of these marks will lower your credit score.
- Public records: these can include things such as bankruptcies, judgements and collection items. These occurrences will also lower your score.
- Amount owed: if you owe too much money, it will lower your credit score. Especially if you are nearing your total credit limit.
- Length of your credit history: basically, the longer your credit history, the better.
- New accounts: opening a large number of accounts within a short period of time will frequently lower your score.
- Accounts in use: if you have too many open accounts, this may lower your score, no matter if you are using the accounts or not.
- Inquiries: Whenever someone looks into your credit report, this information is added to your credit report. This can include lenders, landlords, insurers, or even employers. The more inquiries, the lower your credit score.
This is all available, and for free, online! Advantages to checking your credit report online include:
- Immediacy of the information availability
- Details on credit cards and loans that are opened in your name, companies accessing your credit file, and payment information, etc.
- Printable formatting so you can have a paper copy
- Ability to dispute errors in your credit file quickly and easily online
- Access to Customer Service - usually 24/7!