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What Is a Credit Report?

4 min read

Last Updated: February 19, 2025

Table of contents

Key Takeaways

Your credit report contains information about your credit history, including current and former accounts, debts, and inquiries.
It’s wise to address issues on your credit report as soon as you find them to avoid impact to your credit score.
According to the Federal Trade Commission, you're entitled to credit reports from each major credit reporting agency weekly.

If you’re planning to apply for a new credit card, you might want to look at your credit report first. Credit card companies and other lenders may consult your credit report to determine your likelihood to repay debts on time. By addressing any issues before you apply for a credit card, you may improve your eligibility and the interest rate you’ll pay.

What is a credit report?

A credit report is a document that contains financial information related to your creditworthiness. Your credit report organizes your history with credit like your accounts, mortgages, debt, and your payment history. Financial entities like banks and credit card companies report relevant information to credit bureaus, also known as credit reporting agencies, to develop credit reports. The three major credit reporting agencies are Experian^®, TransUnion^®, and Equifax^®.

Companies like VantageScore^® and the Fair Isaac Corporation (FICO) use credit scoring models to transform your credit report into a credit score. Those scores give lenders an idea of the likelihood you’ll repay loans (also called your credit risk).

What personal information is in a credit report?

Credit reports vary across the three bureaus because credit reporting agencies present their credit reports differently and may receive different data from lenders at different times. However, the information they each contain typically falls into the same categories.

Credit cards, mortgages, auto loans, student loans, personal loans, and other lines of credit all appear in your credit report. Your report will show when you opened and closed the accounts; your overall payment history, including missed payments; your balance; account types; and specific lenders.

Your credit report includes any names you use on credit accounts, your current and prior addresses, employment information, phone numbers, and social security numbers.

Previously, public records, including tax liens, civil judgments, and bankruptcies, could all appear on your credit report. According to the Consumer Financial Protection Bureau, since 2018, the only public records included in reports are bankruptcies.

When you apply for a loan or a credit card, and the lender views your credit report, it triggers a hard inquiry. On the other hand, a soft inquiry occurs when you or someone you’ve authorized (like a potential employer) checks your credit, or when a lender looks to pre-approve you. Only hard inquiries affect your credit score, but all inquiries appear when you check your credit report.

Information that isn’t in your credit report

Only information related to your creditworthiness should show up on your credit report. Personal information that doesn't appear in your credit include your medical history, criminal background, race, ethnicity, marital status, income, or bank account information for checking or savings.

Why it’s important to have accurate information in your credit report

Your credit score not only helps determine what loans you qualify for, your credit limit, and your interest rates; it plays a role in most facets of your life. Phone plans, insurance policies, apartment or house rentals, internet service, and more may require credit inquiries.

Some employers may even conduct a credit inquiry on you to make hiring decisions, according to information from the Federal Reserve. This means that errors in your credit report may have serious consequences. Errors like duplicate accounts can increase your credit utilization and impact your credit score.

When you review your credit report, note any mistakes, changes, and information you don’t recognize. That way, you can take immediate action to address these issues with your creditors and the credit bureau and repair any damage.

How to read a credit report

All credit reports might look a little bit different. However, they all contain similar information and have comparable structures.

Identifying information

One section of your credit report contains your identifying information. Look closely and make sure your name, social security number, and address history don’t have any errors.

Credit accounts

Another section should contain all your loans and credit card accounts. A sparse or blank section usually means you don’t have any credit history. Otherwise, you could see plenty of information under each account, including the balance, monthly payment history, when you opened and closed it, and more. If you have a long credit history, it may be wise to comb through this section carefully.

Your credit card activity will appear in your credit report and may be an important part of determining your credit score. Your report will show the dates you opened and/or closed an account, your payment history, your balance, and more.

Bankruptcies and collections

Bankruptcies and accounts in collections appear in their own section. You may not recognize the name of a collection agency that currently holds your credit account, especially if they recently purchased your debt. If you’re unsure, you can contact the collection agency to verify.

Inquiries

The final section lists everyone that has recently looked at your credit report. Inaccurate inquiries could indicate that someone has tried to open accounts under your name, so make sure you contact the credit bureau quickly if you see any inquiries that look wrong.

How to get a free credit report

Federal law allows you to receive one free credit report every 12 months from each of the three major credit reporting agencies. The FTC (Federal Trade Commission) reports that the three credit bureaus have permanently extended the program to include one free report per week.

You can request your free credit report at AnnualCreditReport.com (the only website authorized by the federal government). Additionally, you can ask for a free credit report within 60 days of being denied credit.

The bottom line

Your credit report gives businesses and creditors insight into your credit background before they make a credit decision. Whether you’re applying for a new credit card or looking to improve your finances, it’s wise to check your credit report often. That way, you can avoid surprises, resolve inaccuracies, and improve your credit to get the best credit card for your unique circumstances.

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