# Credit Report: Definition, Contents, and How to Get It for Free

## What Is a Credit Report?

A credit report is a detailed breakdown of your [credit history](https://www.investopedia.com/terms/c/credit-history.asp) prepared by a [credit bureau](https://www.investopedia.com/terms/c/creditbureau.asp). Credit bureaus collect financial information about you and compile their reports based on that information. Lenders use the reports, often along with other data, to determine your [creditworthiness](https://www.investopedia.com/terms/c/credit-worthiness.asp). Insurance companies, employers, and landlords may check your credit reports, as well.

### Key Takeaways

*   A credit report is a summary of your credit history, compiled by a credit bureau.
*   Credit reports include details on your credit accounts, public records such as bankruptcies, and a list of entities that have asked to see your credit report.
*   The three major credit bureaus—Equifax, Experian, and TransUnion—are each required to provide you with a free report at least once a year.

## How Credit Reports Work

In the United States there are three major credit reporting bureaus: [Equifax, Experian, and TransUnion](https://www.investopedia.com/personal-finance/top-three-credit-bureaus/). Each of these companies collects information about your credit history to create a unique credit report on you. Although most of their information is similar, there are often small differences among the three reports depending on which of your creditors, such as mortgage lenders and credit card companies, provide information to that particular bureau. Some creditors may supply information to one or two bureaus but not all three, and some may not supply any information on you at all.

Credit reports focus primarily on your use of credit. They do not include information on other types of bills. Nor do they show your income, investments, or other assets.

> **Advisor Insight**
>
> Derek Notman, CFP®, ChFC, CLUIntrepid Wealth Partners LLC, Madison, WIMake sure to review your credit report before you need it. A client of mine was applying for a home mortgage, and when the bank pulled their credit report, there was over $20,000 of credit card debt on the report, but the client didn't have any credit cards.What had happened was that the client had the same name as their father, so when the credit report was run, it pulled their correct information but also accidentally pulled their father’s credit card balance.Make sure to check for errors before you think you will need to apply for credit, so you can have them fixed if there are any. Not doing this could delay your credit decision, cause your lender to think twice about lending you credit, and ultimately delay a time-sensitive purchase.

## What Information Is in My Credit Report?

Credit reports typically divide information into four sections. These are:

1.  **Personal Information**: The top of the report contains personal information to identify you, including your name (and any variations of your name that you use), address, date of birth, spouse or co-applicant, and phone numbers.
2.  **Accounts**: The second section represents the bulk of most reports and includes detailed information on your past and present credit accounts, both [revolving credit](https://www.investopedia.com/terms/r/revolvingcredit.asp), such as credit cards and lines of credit, and [installment credit](https://www.investopedia.com/terms/i/installmentdebt.asp), such as auto loans, [personal loans](https://www.investopedia.com/personal-loans-stay-on-credit-7569422), and mortgages. It will indicate when you opened the account as well as its current status, such as whether it is open or closed. In addition, and most importantly, it will show whether you have kept up with your payments on that account or fallen behind.
3.  **Public Records**: The third section includes public records regarding any bankruptcies, [legal judgments](https://www.investopedia.com/terms/j/judgement.asp), or tax liens. It does not include non-financial matters, such as arrests.
4.  **Credit Inquiries**: The bottom of the report lists all of the entities that have recently asked to see your credit report. These fall into two categories: [hard inquiries](https://www.investopedia.com/terms/h/hard-inquiry.asp), which happen when you apply for credit, and [soft inquiries](https://www.investopedia.com/terms/s/soft-inquiry.asp), which occur when a potential creditor requests your file without your knowledge for marketing purposes. Hard inquiries can have a negative impact on your credit score, although it is usually brief.

## Credit Reports and Credit Scores

[Credit scores](https://www.investopedia.com/terms/c/credit_score.asp) are three-digit numbers, typically ranging from 300 to 850, that serve as a sort of shorthand for your creditworthiness. The information in your credit reports is used to compute your credit scores, but the scores themselves are not part of your report and must be obtained separately.

Credit scores are computed using formulas developed by [FICO](https://www.investopedia.com/terms/f/fico-fair-isaac.asp) or a competitor such as [VantageScore](https://www.investopedia.com/terms/v/vantagescore.asp). They assign different weightings to the information in your credit report, to reflect its importance and predictive value. A typical FICO score breaks down like this:

**Payment history: 35%.** This reflects whether you pay your credit bills on time.

**Amounts owed: 30%.** This looks at factors such as your [credit utilization ratio](https://www.investopedia.com/terms/c/credit-utilization-rate.asp), which compares how much debt you have outstanding to the total amount of credit you have available to you. Generally speaking, the lower that percentage, the better.

**Length of credit history: 15%.** Older accounts count for more than newer ones.

**Credit mix: 10%.** The credit scoring models favor individuals who've had a variety of credit types (such as a credit card and a car loan or mortgage) and used them all responsibly.

**New credit: 10%.** If you've taken on a lot of new credit lately, lenders can see that as a red flag.

While that's a typical breakdown, some scoring models put greater emphasis on certain factors. For example, there are scoring models specifically for mortgage lenders, car loan lenders, and credit card issuers. As a result, many consumers won't have just one credit score but several of them.

## How Long Does Information Remain on Your Credit Report?

Information on your credit report will typically remain for at least seven years, after which it basically falls off. One exception is Chapter 7 bankruptcy, which can remain for up to 10 years.

## Who Can See Your Credit Report?

Under the [Fair Credit Reporting Act](https://www.investopedia.com/terms/f/fair-credit-reporting-act-fcra.asp), businesses and other parties need a legally permissible reason to request your credit report. That list can include lenders, insurance companies, employers, landlords, and government agencies. In the case of employers, you must give your permission in writing.

## How Can You Obtain Your Credit Report?

By law, you are entitled to a free copy of your credit report from each of the three major bureaus at least once a year. The official website for that purpose is [AnnualCreditReport.com](https://www.annualcreditreport.com/index.action). You're also entitled to see your credit report free of charge if you've recently been denied credit, insurance, or employment based on the information in your report or if you've been a victim of identity theft.

## The Bottom Line

Your credit reports contain [information that lenders, insurance companies, and others will use to judge you](https://www.investopedia.com/terms/c/credit-reference.asp). For that reason it's important to check your reports periodically to make sure the information in them is correct. If you find errors, you have a right to dispute them, and the credit bureau is required by law to investigate the matter and get back to you.

> **Article Sources**
>
> 1.  Federal Trade Commission. "[A Summary of Your Rights Under the Fair Credit Reporting Act](https://www.ftc.gov/system/files/documents/statutes/fair-credit-reporting-act/545a_fair-credit-reporting-act-0918.pdf)," Page 1.
>     
> 2.  Experian. "[Understanding Your Experian Credit Report](https://www.experian.com/blogs/ask-experian/credit-education/report-basics/understanding-your-experian-credit-report/)."
>     
> 3.  myFICO. "[What's in My FICO Scores?](https://www.myfico.com/credit-education/whats-in-your-credit-score)"
>     
> 4.  TransUnion. "[How Long Does Bankruptcy Stay on Your Credit Report?](https://www.transunion.com/blog/credit-advice/how-long-does-bankruptcy-stay-on-credit-report)"
>     
> 5.  Consumer Financial Protection Bureau. "[Who May Request My Credit Report?](https://www.consumerfinance.gov/ask-cfpb/who-may-request-my-credit-report-en-1305/)"