What’s a credit report, and what does it include?

If you’ve ever applied for a mortgage, a credit card, or an apartment, chances are someone’s looked at your credit report. And while you don’t need to memorize every detail that goes into one, understanding the basics of credit reporting can help you stay on top of your finances and avoid surprises.

This article explains what a credit report is, the information it includes, and how to monitor and improve yours.

What’s a credit report?

A credit report is a detailed assessment of how an individual has handled credit and debt in the past. It includes credit history from their earliest accounts to their most recent applications. This report plays a major role in decisions made by lenders, landlords, insurers, and sometimes even employers.

Credit bureaus, also called credit reporting agencies, are the organizations that manage and track your credit. In the United States, these include Equifax, Experian, and TransUnion.

Credit bureaus collect data from creditors and lenders and compile it into a comprehensive report about your credit behavior. It’s not uncommon to have differences between your score from each bureau, since creditors aren’t required to report to each one. That’s why it’s a good idea to check multiple bureaus to get a holistic view of your standing.

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What’s in a credit report?

Credit reports have several categories, each providing different insights into your creditworthiness. Here’s a breakdown of the most common credit report details.

Personal information

This section includes identifying details like your:

— Name

— Date of birth

— Current and previous addresses

— Phone numbers

— Social Security number

If you’ve ever applied for credit under a different last name (after a marriage or divorce, for example), those variations may appear here too.

Credit accounts

This section gives lenders a picture of how much debt you’re managing and if you’ve consistently made payments on time. All your current and historical credit accounts appear here, including:

— Credit cards

— Credit lines

— Auto loans

— Student loans

— Mortgages

Each account entry usually includes:

— The name of the creditor

— The type of credit

— Your credit limit or the original loan amount

— The account balance

— Your payment history

— The dates the account was opened and closed

Credit accounts generally fall into two categories: revolving accounts like credit cards, and installment accounts like mortgages or auto loans. Credit reports include both types, and lenders may consider your mix of accounts when evaluating your creditworthiness.

Credit inquiries

Every time someone checks your credit report, it leaves a mark. There are two kinds of credit inquiries:

— Hard inquiries happen when you apply for credit, such as a loan or a credit card. Hard inquiries stay on your report for up to two years, but they usually only impact your credit score for a few months to a year.

— Soft inquiries happen when you check your own credit or when a lender runs a background check that isn’t tied to a credit application. Soft inquiries and pre-approvals don’t affect your credit score.

If you apply for the same type of credit multiple times in a short period, like when you’re shopping around for the best mortgage rates, credit scoring models often count those inquiries as a single event. You typically have a 14 to 45 day window depending on the model, but outside of that you might experience multiple hits to your credit.

Collections and public records

Missed payments sent to collections, unpaid debts, liens, foreclosures, and bankruptcies appear here. Even unpaid child support and alimony can be included. Public record items like bankruptcies can stay on your credit report for up to 10 years.

How do credit bureaus use credit reports, and why are they important?

Lenders use your credit report to evaluate risk — specifically, how likely you are to repay the money you borrow. That’s why your credit report and score carry so much weight when applying for new credit.

The information in your report feeds into your credit score, which lenders use to set your loan terms. A higher credit score could mean a lower interest rate. Low credit scores and reports with recent missed payments, high credit card usage, or lots of hard inquiries could mean higher costs or even denial of credit.

Credit reports aren’t just for lenders. They may also be used to approve or deny a rental application, set insurance premiums, or verify your identity. Because your credit history shows how you’ve handled financial responsibilities over time, a strong report helps open doors and protect your finances.

6 tips for a positive credit report

Here are some practical tips for improving your credit score to potentially land better loan terms:

1. Pay your loans and bills on time: On-time payments build your credit score and show creditors you manage your obligations responsibly.

2. Minimize your credit utilization ratio: Using too much available credit can lower your score, even if you always pay on time.

3. Avoid closing old credit accounts: Long-standing accounts contribute to your credit history length, which helps your score.

4. Limit how often you apply for new credit: Every new hard inquiry can affect your credit score and signal risk to lenders.

5. Review your reports regularly and dispute errors: Mistakes happen, but catching them early allows you to fix problems before they impact future applications.

6. Contact your creditors if you can’t repay: Some lenders are willing to work out revised payment terms, which may even lower the principal owed — if you’re in a bind, it never hurts to ask.

How to check your credit report

Thanks to fair credit reporting laws, you have the right to access your credit report for free and dispute errors that could affect your creditworthiness.

There are a variety of options for running a credit report yourself. Each results in a soft inquiry, so they won’t affect your credit score.

On the bureau’s website

Each of the three credit bureaus — Equifax, TransUnion, and Experian — allows you to request your report. Some offer subscriptions or monitoring tools, but you don’t have to pay to access your core information.

At AnnualCreditReport.com

AnnualCreditReport.com is the official, government-authorized site where you can request a personal credit history report from each of the major bureaus once every week.

Using third-party tools

Banks, credit card issuers, and financial apps may provide credit report data or scores at no cost. Make sure you understand what’s included and how frequently the data gets updated.

You may also be eligible for additional free credit reports if:

— You receive public assistance

— You’re unemployed and looking for a job

— You believe there’s inaccurate information in your report due to fraud

It’s a good idea to check your credit reports regularly — at least once a year, and more often if you’re planning a major financial move. Because not all creditors report to every bureau, reviewing all three reports makes sure you’re catching errors or inconsistencies that might only appear on one. Monitoring your reports also makes it easier to spot fraudulent activity or signs of identity theft early.

Get your mortgage in motion with Better

A strong credit report can open doors — and Better helps you move through them faster. You can get pre-approved in as little as three minutes with no paperwork and no impact on your score. When it’s time to buy, Better keeps pace, with funds available in as little as seven days.

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