Understand Your Credit Report
Your credit report is the foundation of your financial health. Learn how to read it, understand what it means, and take action to improve your credit score. Free education for everyone.
Complete Credit Education Guide
Master your credit score with our comprehensive guide. Learn what credit scores are, how they work, and proven strategies to build excellent credit.
What is a Credit Score?
Understanding Credit Scores
A credit score is a three-digit number that represents your creditworthiness to lenders. In the United States, credit scores range from 300 to 850, with higher scores indicating better credit health and lower risk to lenders.
Why Credit Scores Matter:
- Determine loan approval and interest rates
- Affect insurance premiums
- Impact rental applications
- Influence employment opportunities
- Affect utility deposits and cell phone plans
💡 Pro Tip
Your credit score is calculated by three major credit bureaus in the United States: Experian, Equifax, and TransUnion. All three use similar but slightly different scoring models.
US Credit Score Ranges
Understanding Your Credit Report Sections
Every credit report contains four main sections. Here's what each one means:
Personal Information
Your identifying information including name, DOB, SSN, addresses, and employment history.
⚠️ Tip: Check for misspellings or incorrect addresses that could indicate identity theft.
Credit Accounts
Complete details of all credit cards, loans, and mortgages including payment history and balances.
⭐ Key: This is the most important section that affects your credit score.
Credit Inquiries
Records of who has checked your credit, including hard and soft inquiries.
💡 Note: Too many hard inquiries in a short period can lower your score.
Public Records
Bankruptcies, collections, judgments, tax liens, and foreclosures.
⏰ Timeline: Most items stay for 7 years, bankruptcies for up to 10 years.
Common Credit Report Errors
Up to 1 in 5 people have errors on their credit reports. Here's what to check:
Incorrect Personal Info
Wrong name, address, or SSN can indicate identity theft or data entry errors.
Accounts Not Yours
Unknown accounts could indicate identity theft or mixed files. Dispute immediately.
Wrong Payment History
Payments marked late when paid on time can significantly damage your score.
Outdated Negative Items
Items should be removed after 7 years (most) or 10 years (bankruptcies).
Duplicate Accounts
Same account listed multiple times inflates your debt. Report duplicates now.
Found an Error?
Learn how to dispute errors and protect your credit below.
How to Dispute Credit Report Errors
If you find errors, you have the right to dispute them. Here's how:
Document the Error
Gather evidence supporting your dispute: receipts, statements, payment confirmations, and any correspondence.
Contact Credit Bureaus
File a dispute online or by mail with Experian, Equifax, and TransUnion. Include all supporting documentation.
Contact the Creditor
Also notify the company that reported the error. They must investigate and correct inaccurate information.
Follow Up
Credit bureaus have 30 days to investigate. Check back to ensure errors are corrected or removed.