Credit Reports

Your credit score is like your GPA: It shows how well you’ve managed your credit and how reliable you are for lenders to extend credit to you. If your credit score is your GPA, your credit report is your full transcript. It contains a detailed record of your borrowing and payment history and is used by lenders, landlords, and sometimes employers.

Credit reports are managed by three private companies known as “credit bureaus:” Equifax, Experian, and TransUnion. Whenever you make a payment (or miss one), your lender may report that activity to them. Because lenders may not report to all three bureaus, the credit reports can vary.

These bureaus manage millions of records, and errors are more common than you think. Examples of errors include:

• Accounts marked as unpaid after being paid off
• Incorrect late payments
• Accounts opened fraudulently in your name

The law says you are entitled to access your reports every 12 months for free, so don’t ever pay for them. Skip the “free” trial sites that ask for a credit card and go straight to AnnualCreditReport.com. It is the only official, government-authorized site for grabbing your reports.