Your Credit Report And Credit Score

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Your Credit Report

Your credit report is a month-by-month record of your payment history with financial institutions or credit card issuers (companies that grant credit). It shows the following.

• How much credit you are using.
• How well you pay your debts.
• Who is inquiring about your credit.
• Information on bankruptcies or federal income tax liens.

Order A Free Credit Report

With a poor credit rating, you could be denied a loan or credit card or incur higher interest rates. You could also be turned down for insurance, an apartment or even a job. Review your credit report at least once each year to ensure it is accurate and that you are not the victim of identity theft. The USAA Educational Foundation publication, Identity Theft, offers more information.

Your Credit Score

Credit scores range between 300 and 850. The higher your score, the better. Most lenders consider scores above 700 a good indicator of low credit risk, while scores below 620 may indicate credit problems. A low score may cause you to be denied credit. With a slightly higher score you could get credit but at a higher interest rate. If your score is high enough, you may qualify for the best rate on a loan or credit account.

No single factor determines your score. But one or more of the factors may affect the final score more than others, depending on the overall information in your credit report. Your score can also change as new information is received by credit reporting agencies. Your score today could be different than the score you have 3 months from now.

You may have different credit scores from Equifax, Experian and TransUnion, because some lenders report information only to one or two of these agencies. To understand how lenders evaluate you, review your credit scores from all three credit reporting agencies. You will probably have to pay a fee to obtain your credit score.

Your Credit Rights

• Provide you a complete credit report. Anyone may request a free credit report annually. You may request a free credit report anytime if you have been denied credit, are a victim of identity theft, receive welfare benefits or are unemployed but expect to apply for employment in the next 60 days.
  
  
• Investigate, at your request, erroneous or missing information in your report. The credit reporting agency must provide you with a written report of the investigation, as well as a revised copy of your credit report if the investigation resulted in changes.
  
  
• Keep your credit report information from anyone other than legitimate users of the credit reporting agency.
  
  
• Remove detrimental credit information from your file after 7 years. Bankruptcy information can be removed after 7 to 10 years.

Your Credit Responsibilities

• Understand the entries on the credit report. Each credit reporting agency’s credit reports contain information such as how long an account has been tracked, the highest amount charged, the account balance at the time of the report and the type of account. Other entries identify creditors that have viewed your credit history. Codes indicate debtors’ arrangements, repossessions and bad debts, if applicable.
  
  
• Ensure the credit report is accurate. Common errors include incorrect personal information, missing information and failing to correct damaging information after problems are resolved.
  
  
• Take action to correct errors. Document your actions and follow up until the problem is resolved.
  
  
• Inform creditors of errors. The credit reporting agency must investigate the items in question — usually within 30 days — unless they determine that the dispute clearly lacks merit.
  
  
• Retain your written account of errors or discrepancies in your file. If an investigation does not resolve the dispute to your satisfaction, you have a right to add a statement to your credit report file contesting the accuracy or completeness of the disputed information.