How to Read Your Credit Report for Free
Your credit report is one of the most important documents in your financial life, but many people have never seen theirs. Understanding what's on your report is the first step to building good credit and fixing any errors that might be holding you back.
Where to Get Your Free Credit Report
Under federal law, you are entitled to one free copy of your credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) every 12 months. The only official website to get these free reports is:
Be wary of other sites that promise free reports but may try to sell you a subscription service. Stick to the official government-mandated site.
What to Look For on Your Report
Once you have your reports, look for these key sections:
- Personal Information: Check that your name, address, Social Security number, and employment information are all correct. Errors here can be a sign of identity theft.
- Credit Accounts (Tradelines): This is the core of your report. It lists all of your credit accounts, including credit cards, mortgages, auto loans, and student loans. For each account, verify that the account status (open/closed), balance, credit limit, and payment history are accurate.
- Public Records: This section lists bankruptcies, liens, or civil judgments against you. These are serious negative items, so ensure they are accurate.
- Credit Inquiries: This lists who has recently accessed your credit report. "Hard inquiries" (from when you apply for new credit) can slightly lower your score, so make sure you recognize them. "Soft inquiries" (from personal checks or pre-approved offers) do not affect your score.
What If You Find an Error?
If you find an account you don't recognize or an incorrect late payment, you have the right to dispute it. You can file a dispute directly with each credit bureau that is reporting the error. They are legally required to investigate your claim, typically within 30 days.
Regularly checking your credit report is a vital financial habit. It allows you to catch errors early, monitor for fraud, and track your progress as you work toward your financial goals.