Back to Learn

How Credit Reports Work

7 min read Beginner

Your credit report is a detailed record of your credit history. It's what lenders, landlords, and even employers look at when they want to know how trustworthy you are.

What's On Your Report

  • Personal Information — Name, address, Social Security number, employers
  • Credit Accounts — Credit cards, loans, mortgages — open and closed
  • Payment History — Whether you pay on time, every month
  • Credit Inquiries — Who has looked at your report
  • Public Records — Bankruptcies, liens, judgments
  • Collections — Debts that have been sold to collection agencies

The Three Bureaus Are Different

There isn't just one credit report — there are three major credit bureaus: Equifax, Experian, and TransUnion. Each collects information independently, so your reports can be different at each one.

This is important because a lender might check only one bureau. A negative item could appear on one report but not the others. That's why it's worth checking all three.

How Long Things Stay On

Late Payments
7 years from date of delinquency
Collections
7 years from date of first delinquency
Bankruptcies
7-10 years depending on type
Hard Inquiries
2 years (stops affecting score after 12 months)
Closed Accounts
10 years after closing (positive accounts stay indefinitely)

Your Rights Under the FCRA

The Fair Credit Reporting Act gives you important rights:

  • You can request a free copy of your report once per year from each bureau
  • You can dispute inaccurate information
  • Negative information must be removed after the legally mandated time period
  • You can freeze your credit to prevent new accounts from being opened

How to Get Your Reports

The only official source for free annual reports is AnnualCreditReport.com. Don't pay for credit reports — they're free by law.