How to read a credit report

A credit report is a summary of a person’s credit activity and history. Lenders often use credit reports when deciding whether to approve an applicant for a loan or credit card. Credit scores are also calculated using information from credit reports.

So you can probably see why credit reports are so important. And knowing how to read your credit reports is an essential part of financial literacy. Find out how to monitor your credit reports, what’s on a credit report and what to look out for when reviewing them.  

What you’ll learn:

• Credit reports will generally include sections on personal information, credit history, credit inquiries, public records and collection accounts, if applicable. 

• You typically won’t find things like credit scores or purchases on your credit reports.

• It’s important to regularly review your credit reports so you can find and dispute any errors. Plus, it can help with spotting signs of identity theft or fraud.

Credit reports from different bureaus might be organized differently and contain slightly different information. But generally, they’ll include these sections:

The personal information you’ll find on your credit report may include your:

• Name and any names you’ve used in the past

• Social Security number

• Birth date

• Current and previous addresses

• Phone numbers

Make sure to review all the personal information on your credit reports to make sure it’s accurate and doesn’t show any signs of identity theft or fraud.

The credit history—or credit accounts—section is often the longest part of a credit report. This section will likely include:

• Any current or closed credit accounts

• Types of current and past credit

• Names of creditors and lenders

• Credit limits or credit amounts 

• Account balances

• Payment history

• Dates accounts were opened and closed

Credit accounts will appear on your credit report as either satisfactory—also called in good standing—or negative accounts.

A credit inquiry is when an organization or individual requests to look at your credit report. The requester might be a lender, an employer or you. There are two different types of credit inquiries: hard inquiries and soft inquiries. 

The main difference between the two types of inquiries is that hard inquiries may affect your credit scores while soft inquiries don’t.

The public records section of a credit report may include things like:

• Bankruptcies

• Repossessions

• Liens

• Foreclosures 

• Civil judgments

Creditors may turn unpaid accounts over to a collection agency if the account goes unpaid for a certain amount of time. And accounts that are in collection can show up on credit reports and impact credit scores.

Credit reports show information about you and your history with credit. But not everything is included. Generally, you won’t find the following on your credit reports: 

• Credit scores

• Savings and checking account balances

• Investments

• Purchase transactions

• Income

• Certain public records, like arrests or divorces

• Medical bills that aren’t sent to collections

• Personal information like race, ethnicity, disabilities and religious or political affiliations

It’s a good idea to regularly review your credit reports. That way, you can spot errors that might affect your credit scores and watch for signs of identity theft or fraud. 

If you spot an error on your credit report, contact the credit reporting agency and the company that provided the incorrect information. The Consumer Financial Protection Bureau (CFPB) also offers a guide to disputing credit report errors that includes a dispute letter template and contact information for each of the three major credit bureaus. 

The Fair Credit Reporting Act requires credit reporting agencies to investigate dispute claims. And if the information is found to be inaccurate, it has to be removed from your credit report.

You can get free copies of your credit reports from each of the three major credit bureaus—Equifax®, Experian® and TransUnion®—by visiting AnnualCreditReport.com. 

You can also access your TransUnion credit report and VantageScore® 3.0 credit score as often as you like with CreditWise from Capital One. It’s free for everyone, even if you’re not a Capital One cardholder. And using CreditWise won’t hurt your credit.

Understanding how to read your credit reports is an important part of financial literacy and using credit responsibly. Plus, regularly checking your credit reports can help you spot any errors and track your progress toward your financial goals. 

If you want to learn more, check out these guides on monitoring your credit and improving your credit scores.