Getting Ahead: Check Your Credit Report

NEW YORK — Most of us have a credit report. A credit report has information about our credit activity and history of making payments. This might include loans, credit cards, credit accounts at businesses, mortgage or rent payments, or utility payments. Businesses who request credit reports want to know whether a person makes payments on time or has any negative issues like bankruptcy. If they extend you credit, will they get their money back?

There are many credit reporting companies, but three are nationwide companies — Equifax, TransUnion and Experian. Credit reporting companies, or credit bureaus, compile and sell credit reports and often issue credit scores. Your credit history or credit score affects whether you can borrow money and what interest rate you will be charged. It might determine how large a down payment you must make or whether you need a co-signer.

Who might want to see your credit history?

Obviously, any lender; this includes banks and credit unions who issue home, personal, student, or auto loans or credit cards. Government agencies might need to see whether you are eligible for assistance programs. Employers. Landlords who might do tenant screening. Insurance companies. Utility companies, including electric, gas, phone, internet, or pay television. Retail stores that offer financing or suspect fraud or return abuse. Gaming establishments like casinos that extend credit. Companies that market and sell certain products and services specifically to lower-income consumers and subprime credit applicants, like short-term lending and rent-to-own businesses.

Because your credit report is used by so many agencies and businesses, it is important to know whether it is accurate. Therefore, you should request your credit report at least once a year, review it, and dispute anything that you think is inaccurate.

Under the Fair Credit Reporting Act, all consumer reporting companies are required to provide you a copy of the information in your report if you request. The three nationwide companies must provide you a free report no less than once every twelve months upon your request (and within fifteen days of receiving your request). You can certainly stagger these, and request one every four months.

How do you check your credit report?

It's easy. Go to AnnualCreditReport.com. Then you select one of the three major companies: Equifax, TransUnion, or Experian.

What will you find in your credit report?

Equifax, TransUnion and Experian reports contain:

• Personal information, such as your name, date of birth, name(s) of loan co-applicants, as well as current and past residential addresses, phone numbers, and employment history if your creditors report it.
• Information about your payment history as submitted by credit card companies, home and auto lenders (and leasing companies) and other creditors.
• How much credit you have and use.
• Information from debt collectors including unpaid medical debt that is greater than 365 days delinquent from date of service and over $500 and past-due debt from cable and phone bills.
• Some public information like bankruptcies.
• Inquiries from creditors who have requested your credit reports when you apply for credit.

If an "adverse action" is taken against you, meaning you are denied credit, or a job or other benefit, because of something in your credit report, you should be notified by the company that made that decision, and they should tell you to get a copy of the credit report they used. Then you can review it and determine whether you need to dispute anything in your record.

Review your credit reports at least every twelve months to ensure that they are accurate and complete. Fact-check them any time you intend to rent, purchase a home or car with credit, buy insurance, apply for a different job, or apply for any type of credit in the near future. It's free at AnnualCreditReport.com.

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