Your Credit Report: What You Need to Know

Every time you take out a loan, open a credit card account, or buy something on an installment plan, you create a transaction that ends up in your credit report. Banks, mortgage companies, or any businesses offering credit use these reports to see how well you've managed your credit in the past.

So what else is in your credit report? Think of it as a record of your personal credit history. It includes:

• Personal data: Your name, past and present addresses, previous employers, current employers and your Social Security Number (SSN).
• Credit accounts:Information on current and past loans and credit accounts, credit limits, current balances and payment histories (including late payments, repossessions, charge-offs and collection activity).
• Public record information: Information on any tax liens, bankruptcies, or legal judgments against you.
• Inquiries: Information about businesses that have requested your credit report within the last 12 months.
• Negative information: To assist you in reading the report, some credit reports may add a section that summarizes all negative information.
• Personal entries: Includes any 100-word statements you have added to your credit report.

Getting Your Credit Reports

You are ultimately responsible for the accuracy of your credit report, so it is important that you check yours at least once a year.

You are entitled to one free credit report each year from each of the three major credit reporting bureaus: Experian Inc., Equifax and TransUnion LLC. These three bureaus are competitors and do not share information with each other, so each credit report may be somewhat different - you should check all three. You can request them via the Internet at www.annualcreditreport.com, by phone at 877/322-8228, or by mail at Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348.

Because this new federal law allowing free reports has just gone into effect, your state of residency determines when you are eligible to receive your free reports - check the website or call the toll-free number for state details.