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What is the difference between a credit
report and a credit score?
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Your credit reports and your
credit scores are two different
things. A credit report is a
statement that has information
about your credit activity and
current credit situation such as
loan paying history and the status
of your credit accounts. Your
credit scores are calculated based
on the information in your credit
report.
Your credit score, as well as the information on
your credit report, are important for
determining whether you’ll be able to get a
mortgage, credit card, auto loan, or other
credit product, and the rate you’ll pay. Your
credit scores are calculated based on the
information in your credit report.
You have many different credit scores, and
there are many ways to get a credit score. Your
score can differ depending on which credit
reporting agency provided the information, the
scoring model, the type of loan product, and
even the day when it was calculated. Higher
scores reflect a better loan paying history and
make you eligible for lower interest rates.
Errors on your credit report can reduce your
score artificially - which could mean a higher
interest rate and less money in your pocket - so
it is important to check your credit report and
correct any errors well before you apply for a
loan.
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How do I get a copy of my credit reports?
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You are entitled to a free credit report every 12 months from each of the three major
consumer reporting companies (Equifax, Experian and
TransUnion). You can request a copy from
AnnualCreditReport.com.
You can request and review your free report through one of the
following ways:
Online: Visit AnnualCreditReport.com
Phone: Call (877) 322-8228
Mail: Download and complete the Annual
Credit Report Request Form.
Mail the
completed form to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
You can request all three reports at once or you can order one report at a time.
By requesting the reports separately (for example, one every four months) you can monitor your credit report
throughout the year. Once you’ve received your annual free credit report, you can still request additional
reports. By law, a credit reporting company can charge no more than $13.50 for a credit report.
You are also eligible for reports from specialty consumer reporting companies. You must request the reports
individually from each of these companies. Many of the companies in this list will provide a report for free
every 12 months. Other companies may charge you a fee for your report.
You can get additional free reports if any of the following apply to you:
You received a notice that you were denied credit, insurance, or employment or experienced another “adverse
action” based on a credit report, you have a right to a free report from the credit reporting company identified in the
notice.
You believe your file is inaccurate due to fraud.
You have requested a credit report from a nationwide credit reporting company in connection with the placing of an
initial fraud alert (you may request two free copies for an extended fraud alert).
You are unemployed and intend to apply for employment within 60 days from the date of your request.
You are a recipient of public welfare assistance.
Your state law provides for a free credit report.
Tip: Be cautious of websites that claim to offer free credit reports. Some of these websites will only give you a
free report if you buy other products or services. Other websites give you a free report and then bill you for
services you must cancel. To get the free credit report authorized by law, go to AnnualCreditReport.com or call
(877) 322-8228.
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How do I get and keep a good
credit score?
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There is no secret formula to building a strong
credit score, but there are some guidelines that
can help.
1. Pay your loans on time, every time: One way to make sure your
payments are on time is to set up automatic payments or set up
electronic reminders. If you’ve missed payments, get current and
stay current.
2. Don’t get close to your credit limit: Credit scoring models look at how close you are to being
“maxed out,” so try to keep your balances low compared to your total credit limit. If you close
some credit card accounts and put most or all your credit card balances onto one card, it may
hurt your credit score if this means that you are using a high percentage of your total credit
limit. Experts advise keeping your use of credit at no more than 30 percent of your total credit
limit. You don’t need to revolve on credit cards to get a good score. Paying off the balance each
month helps get you the best scores.
3. A long credit history will help your score: Credit scores are based on experience over time.
The more experience your credit report shows with paying your loans on time, the more
information there is to determine whether you are a good credit recipient.
4. Only apply for credit that you need: Credit scoring formulas look at your recent credit activity
as a signal of your need for credit. If you apply for a lot of credit over a short period of time, it
may appear to lenders that your economic circumstances have changed negatively.
5. Fact-check your credit reports: If you spot suspected errors, dispute them. If you have old
credit card accounts you are not using, keep an eye on them to make sure that an identity thief
is not using them.
Tip: If you are new to credit, consider getting a product designed to help you establish and build credit.
Financial institutions have developed an array of products and services, such as secured credit cards and credit
builder loans, tailored to helping consumers new to credit to establish and build credit.
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How do I dispute an error on my
credit report?
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To dispute an error on your credit report, contact both the credit reporting
company and the company that provided the information.
How to dispute an error on your credit report
1. Dispute the information with the credit reporting company
If you identify an error on your credit report, you should start by disputing that information with the
credit reporting company (Experian, Equifax, and/or Transunion). You should explain in writing what
you think is wrong, why, and include copies of documents that support your dispute.
If you mail a dispute, your dispute letter should include:
Contact information for you including
complete name, address, and telephone
number
Report confirmation number, if available
Clearly identify each mistake, such as an
account number for any account you may be
disputing
Explain why you are disputing the
information
Request that the information be removed
or corrected
Enclose a copy of the portion of
your credit report that contains the
disputed items and circle or highlight the
disputed items. You should include copies
(not originals) of documents that support
your position.
You may choose to send your letter of dispute to credit reporting companies by certified mail and ask for a
return receipt, so that you will have a record that your letter was received.
You can contact the nationwide credit reporting companies online, by mail, or by phone:
Equifax
Online: www.equifax.com/personal/credit-
report-services/credit-dispute/
By mail: Download the dispute form
Mail the dispute form with your letter to:
Equifax Information Services LLC
P.O. Box 740256
Atlanta, GA 30348
By phone: Phone number provided on
credit report or (866) 349-5191
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Experian
Online: www.experian.com/disputes/main.
html
By mail: Use the address provided on your
credit report or mail your letter to:
Experian
P.O. Box 4500
Allen, TX 75013
By phone: Phone number provided on
credit report or (888) 397-3742
TransUnion
Online: https://dispute.transunion.com
By mail: Download the dispute form
Mail the dispute form with your letter to:
TransUnion LLC
Consumer Dispute Center
P.O. Box 2000
Chester, PA 19016
By phone: (800) 916-8800
TIP: Keep copies of your dispute letter and enclosures.
2. Dispute the information with the company who provided the information (also known as the
furnisher)
What happens after you dispute information on your credit report?
Tip
If you suspect that the error on your report is a result of identity theft, visit IdentityTheft.gov, the federal
government’s one-stop resource to help you report and recover from identity theft.
Credit reporting companies must investigate your dispute, forward all documents to the furnisher, and report
the results back to you unless they determine your claim is frivolous. If the consumer reporting company or
furnisher determines that your dispute is frivolous, it can choose not to investigate the dispute so long as it
sends you a notice within five days saying that it has made such a determination.
If the furnisher corrects your information after your dispute, it must notify all the credit reporting companies it
sent the inaccurate information to, so they can update their reports with the correct information.
If the furnisher determines that the information is accurate and does not update or remove the information,
you can request the credit reporting company to include a statement explaining the dispute in your credit file.
This statement will be included in future reports and provided to whoever requests your credit report.
