A credit report is a history of everything you are doing with your credit now and everything you have done in the past. This report is a computerized file that contains information about you. Information such as:

• Identifying Information - Your name, address, social security number, date of birth, employment address and income are used to identify you. These factors are not used in scoring. Updates to this information come from information you supply to creditors and/or lenders.
• Trade Lines - These are your credit accounts. Creditors and/or lenders report on each account you have established credit with them. They report the type of account, such as credit card, auto loan, mortgage, etc. (revolving or installment), the date you opened the account, your credit limit or loan amount, the account balance and your payment history.
• Inquiries - Inquiries are a list of everyone who accessed your credit report within the last two years. The report you see lists both "voluntary" inquiries, spurred by your own requests for credit, and "involuntary" inquires, such as when lenders order your report so as to make you a pre-approved credit offer in the mail.
• Public Record and Collection Items - Credit reporting agencies also collect public record information from state and county courts, and information on overdue debt from collection agencies. Public record information includes bankruptcies, foreclosures, suits, wage attachments, liens and judgments.

There are three major credit bureaus; Experian (formally TRW), TransUnion and Equifax that collect and maintain personal and financial information. These three bureaus are affiliated with hundreds of smaller credit reporting agencies that gather information for them. These bureaus are not affiliated with the government in any way. They are for-profit corporations that make money by selling your personal and financial information. Not all creditors report to all three bureaus. Each credit bureau will have different information on your credit history.

Yes. There is two basic types of credit reports maintained on you: consumer reports and investigative reports.

1. Consumer type report - This report contains your personal data, creditor accounts, public records, inquiries and can be accessed by any legitimate business or person who is extending you credit. There is a small fee paid to the credit bureau for this type of report.
2. Investigative type report - This report is used for employment or insurance purposes. This report will be much more detailed than a "Consumer Report," and often will be based upon interviews with acquaintances about your lifestyle, character and reputation. If a business or insurance company requests this type of report, you will be notified by the credit bureau. You will also be informed of your right to ask for additional information about the report from the company you applied to.

When you apply for credit or purchase items or services on credit that creditor will send account information to the credit bureau which will be placed in your computerized credit history file. Information can also come from other sources, such as state and federal courts that maintain your public records.

Credit reports can be very difficult to understand. Especially when each credit bureau has their own credit report look and the way they display information. Each credit bureau is required by law to provide sample explanations on how your credit report works and what the information means. When you obtain a credit report there will be sample explanation sheets so you can understand what's on your report.

Prospective money lenders will always review at least one of your credit reports before granting you credit. Your credit report can legally be reviewed by:

• Any creditor or lender to whom you have applied for credit
• A prospective employer
• A mortgage lender, when you have applied for a home loan
• A property management firm, when you have applied to rent an apartment, condo, or house
• Any current employer on a need-to-know basis
• Any person, firm, or agency to whom you have given permission
• Any person, firm, or agency with a legitimate need to know (permissible purpose)
• An insurance company, when you have applied for any type of insurance
• You, as a consumer

The fastest way to obtain a credit report is to contact the credit bureaus directly by telephone or on-line and request a copy of your credit report. There usually is a cost of around $8.00 to $12.00 per report depending on the state you live in. The three main credit bureaus are:

• EQUIFAX
  • (800) 685-1111
  • www.equifax.com
• TRANSUNION
  • (800) 888-4213
  • www.transunion.com
• EXPERIAN (Formerly TRW)
  • (888) 397-3742
  • www.experian.com

Disclosure: Some states require that credit bureaus provide consumers with one free copy of their credit report per year. In addition, please note that the amendments to the Fair Credit Reporting Act (FCRA) recently passed by Congress and signed into law will guarantee consumers with expanded free access to copies of their credit reports. You can contact each one of the credit bureaus listed above and ask them how you can obtain or qualify for your free credit report.