Do you know what's in your credit report? You should! Find out what your creditors are saying about you. A consumer credit report is a record of your credit payment history as reported to credit bureaus by your bank, credit card companies, department stores and other businesses you've borrowed from. Free Annual Credit Report
The Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies – Equifax, Experian, and TransUnion – to provide you with a free copy of your credit report, at your request, once every 12 months. To order your free credit reports visit www.annualcreditreport.com. Make sure you get a credit report every year.
What's in a Credit Report?
A credit report includes information on where you live, how you pay your bills, and whether you’ve been sued, arrested, or filed for bankruptcy. Also included are accounts sent to collection agencies, unpaid child support or alimony, tax liens, unpaid traffic or parking tickets, bounced checks and your job history. Nationwide consumer reporting companies sell the information in your report to creditors, insurers, employers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home.
There are three main credit bureaus:
Equifax - 800-685-111 (www.equifax.com)
Experian - 800-311-4769 (www.experian.com)
TransUnion - 800-888-4213 (www.transunion.com)
All other credit bureaus obtain their information from one of these three. Get a copy of your credit report from all three bureaus because some creditors report to only one of the bureaus.
Credit Score or FICO Score
Lenders use the information in your credit report to evaluate your debt capacity and your collateral or capital. Lenders base their lending decisions on your credit score. Credit scores are often called FICO scores because most credit scores used in the U.S. and Canada are produced from software developed by the Fair Isaac Corporation.
FICO score provide the best guide to future risk based solely on credit report data. The higher the score, the lower the risk. For a fee, you can now obtain your credit score, of FICO score from all three major credit bureaus.