What is an Experian Credit Report?
There are three American credit bureaus that hold your financial records: Equifax, TransUnion and Experian. They collect information about you regarding how you pay your bills, how many loans you take out, how you repay those loans and how risky a borrower you are.
If you wish to take out a mortgage, student loan, auto loan, small business loan, new credit card, rent an apartment or get a new job, your Experian credit report might be pulled so a third party can learn more about you. By law, your creditors need only report information to one of the three credit bureaus, so you may find information on your Experian credit report that isn’t on the other two and vice versa.
How Can You Get Experian Credit Reports?
Each year, you may request a free copy of your Equifax credit report, TransUnion credit report and Experian credit report – either all at once with a free 3-in-1 report or spaced out every few months, whichever you prefer. To get an Experian credit report, you can visit their website and fill out a form to view your data immediately online. You may also call to order a hard copy sent to you by mail.
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How to Read an Experian Credit Report
When you get your first credit report, it may all look like mumbo jumbo to you. Why are there so many versions of your name listed? What does “CHARGEOFF” mean? What does it mean by “potentially negative information?” Why is the same account listed twice? Look at your report shrewdly, as 1 in 4 reports contain serious errors.
The first section is “Personal Header Information,” which includes your full name, report number and report date, which you’ll need for reference if you call Experian.
Then you’ll see your “Personal Information,” which includes your name, date of birth, social security number, current and previous addresses, phone number and current employer. You’ll want to make sure all this is accurate. Sometimes you’ll see several variants of your name because different creditors report things based on what they have on file.
The “Potentially Negative Information” may lead creditors to view you ask a risky borrower. Here you can see if there are any serious mistakes. You’ll see the name of the creditor, their address, your account number and status, the claim filed date and whether it’s been resolved.
The “Credit Items” section will show past and present credit accounts. You’ll see creditor names, addresses, account numbers and statuses, when the accounts were opened, what your limits were, what your monthly payments were, your most recent balance and whether the account was delinquent or not.
“Accounts In Good Standing” will let a creditor know you’re a trustworthy borrower. You’ll see all the same information – creditor name, address, type/status of account, monthly payments, balance and date opened.
“Requests For Your Credit History” will let you know who has been checking your credit report. Usually you’ll see mortgage lenders, credit card companies, potential employers and insurance companies.
There are also some abbreviated codes you may need to know to understand your report better. For instance, “CURR ACCT” means that your account payments are current and you’re in good standing. “CUR WAS 30-2” means your account is current but has been late 30 days twice in the past. “PAID” means your account has a $0 balance and is not active. “CHARGEOFF” means that an unpaid balance has been reported as a loss by the creditor, who has given up trying to get the money owed from you. “COLLECT” means an account is severely delinquent and was sold off to a collection agency. “FORECLOS” indicates a property foreclosure, “BKLIQREQ” indicates debt forgiven in bankruptcy, “DELINQ 60” shows an account 60 days delinquent and “INACTIVE” indicates an account that has not been in use.
Video: How to Dispute Credit Report Errors
How to Dispute an Experian Report Error
Chances are you’ll find something is wrong on your report. The most common credit report errors include: incorrect name confused with someone else or was outdated (54%), credit accounts that were closed but remain listed as open (30%), incorrect reporting of loan nonpayment (25%), listing of the same mortgage or loan twice (22%), lack of positive payment history on a major credit or loan account (8%) and accounts opened without your consent by an identity thief.
To dispute your report, you can dispute information online for free, which is the easiest and most immediate option. All you have to do is click a “Dispute this item” button and enter an explanation of why you think that information is incorrect or inaccurate. You may also phone them at 1-888-397-3742 or write them a credit dispute letter, mailing additional proof to verify your errors (if you have it) to: PO Box 9532 Allen TX 75013.
Once you submit your disputes, Experian will correct personal information errors and duplicate errors. They will also submit a request to your creditors for more information regarding your accounts. If, within 30 days, the creditor does not respond with verification of your debts, then the information will simply be dropped off your account! If the creditor does send in the necessary proof, then your account will remain the same and you will be provided with an in-depth explanation. Winning a credit bureau dispute is the quickest way to improve your credit score!