What’s a credit report?
A credit report is a summary of your financial history compiled by a credit bureau. There are three credit reporting companies in the US: Equifax, Experian, and TransUnion. Lenders use one or more of these to verify your credit history and determine whether or not to lend you money.
Creditors are required to report accurate information about you to the bureaus. The bureaus then translate all of that information into a single three-digit number. This number is your credit score. It tells potential lenders whether or not you are creditworthy. The higher the score, the more likely you are to get a loan at a favourable interest rate. People with low credit scores pay a premium to borrow money.
How to get your TransUnion credit report free of charge
Everyone is entitled to a free copy of their credit reports once a year. You can also get the reports free of charge if you’ve been a victim of identity theft, or if you’ve been turned down for a loan. Otherwise, TransUnion will charge you for it.
The easiest way to get a copy of your TransUnion credit report is online. You can also request the report by calling 877-322-8228 or in the mail by writing to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.
What it all means
Your TransUnion credit report will contain a lot of information. Go over it with a fine-toothed comb to make sure that everything is correct.
At the top of the report, you’ll find your identifying information. This includes your name, current and previous addresses, your social security number, date of birth, phone number, and current and past employers. Under that you’ll see a summary of your credit history, including your credit score. TransUnion use the Empirica formula to calculate the score, which is slightly different from standard FICO model.
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Under the summary, you’ll see a more detailed version of your credit history. This includes mortgages, credit cards, store cards, loans, etc. All of this information should be no more than seven years old. After that, it has to be erased. Then you have a list of any bankruptcies, tax liens, court judgements, child support arrears, etc. These things can stay on your credit report longer. At the bottom you’ll see a list of credit inquires. Every time you apply for credit, it’s noted on your report. Too many inquires will hurt your credit score.
What to do if there’s an error on your TransUnion credit report
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It’s not uncommon to find an error on your credit report. It could be something small, or it may be full-scale identity fraud. The first thing to do is to contact TransUnion directly. You can file a dispute on their website or by calling 800-916-8800. You will then be asked to provide supporting information, such as cancelled checks, to prove your claim. Make sure you keep a detailed written record of all of your communications with the bureau. TransUnion will look at this information and make a decision. If your claim is valid, they will remove the erroneous information from your report.