As an American consumer, you will likely need to borrow money occasionally. Lenders keep track of the borrowing consumers do by creating a credit file, often called a credit report. You have the right to see the information on your credit report, but you have to request it correctly to gain that access.

Credit Report Definition

A credit report is an electronic file containing a record of all your borrowing and that lenders have reported to the credit bureaus. Each of the three major consumer reporting companies collects this information to provide to other lenders or others who have the right or reason to access it often when making borrowing decisions.

You can get a free credit report by visiting AnnualCreditReport.com. You can also download and print a form to request a credit report.

Information Contained on Your Credit Report

Your credit report contains a significant amount of information about your borrowing history. Some of the information contained on your credit report includes:

• A list of all the businesses you have a loan with or that have given you access to credit.
• The total amount of each loan you have or the credit limit on your credit card accounts.
• Your payment history is documented, including whether you have paid your debt on time or had any missed or late payments over the past years.
• The amount of money you have repaid on your loans – how much you borrowed, how much you are paying as a minimum payment, and how much your high balance was.
• Credit inquiries are also listed. This is a list of businesses that have requested access to your credit report within the last two years.
• Your name, address, and any other personal identifying information, such as the name of your employers, both current and past.
• A list of your public records information, such as accounts in collections, disputes filed against you, and bankruptcies spanning the last 10 years, is also listed.

Overview of the Three Major Credit Bureaus

The US has three major credit reporting agencies: Equifax, Experian, and Trans Union. Each of these three organizations has the job of collecting information about your credit use and maintaining that information. They do this for millions of people and businesses in the US.

TransUnion, Equifax, and Experian do not develop the data they report but instead rely on your lenders to report it to you. They compile the data into a credit report, which is then used to create a credit score. That score is a number that represents how "good" your credit score is. The higher your score, the more proven your ability to make timely payments.

Fair Credit Reporting Act Free Credit Report Requirements

The Fair Credit Reporting Act requires that credit bureaus provide consumers access to the information in their credit reports. That means providing at least one free copy of their credit report every 12 months. This can be requested through the AnnualCreditReport.com website, which is the official and only government-authorized website to meet this requirement.

Step-by-Step Guide on Getting a Report from Each Credit Bureau

You can get a copy of your credit report in several ways. For example, you can contact each credit bureau and pay for access. However, here's what to do to get a copy of your credit report through the free tool.

• Visit AnnualCreditReport.com. There, you must enter information about yourself to verify your identity.
• You will likely be asked some questions about accounts you've had in the past. This helps the site determine if you are who you say you are.
• You can then choose which one – or all three – credit reports to obtain. An excellent way to keep a constant eye on your credit file is to pull just one of the three credit bureau reports every four months. Most of the same information is contained in each.
• You will then be given access to all the information on your credit report. This will include much info about your credit use and history. Please read through it to verify that the information is accurate.

If you want to pull another credit report from a different credit bureau, you can follow the same process (if you did not request all three simultaneously).

Disputing Errors on Your Credit Report

What happens when you find an error on your credit report, though? When that happens, you have the right to dispute it. That means you will contact the credit bureau and inform them that you believe there's an error.

You do this at the credit bureau's website. You can file a dispute through the tool at AnnualCreditReport.com (click the link provided, and it will allow you to visit the right credit bureau's website to file the dispute.)

The credit bureau then requires the lender to verify the information. If they cannot, the item is removed from your credit file. Do this as often as you believe there is inaccurate information, as even a tiny mistake could be costly in the long term for your credit history.