Monitoring your credit report on a regular basis is a helpful way to track your financesand safeguard yourself from fraud.
The information that appears on your credit report summarizes how you manage credit, which helps lenders gauge whether they should extend credit to you or not. Errors on your report can hurt your approval odds for credit cards, loans and more.
But with so much information listed on your credit report, it can be overwhelming to figure out what you should focus on. And since you have a credit report with each major credit bureau — Experian, Equifax and TransUnion — there’s three times the amount of data to review.
Nonetheless, you should routinely review your credit reports from all three bureaus. You can access each of your credit reports for free every week until April 20, 2022 by going to AnnualCreditReport.com.
Select breaks down the key details you should pay close attention to when reviewing your credit report.
What to look for when you review your credit report
When you review your credit reports, look for changes to your personal information. This includes account details, inquiries and public record data. If something looks suspicious, double checkthat it’s not a mistake on your end, then dispute the error.
Here are some common errors you could see in each section of your credit report:
Personal information
- Incorrect or incomplete name, address or phone number
- Multiple birth dates
- Wrong social security number
- Inaccurate employment information
Accounts
- Unrecognized credit accounts, including revolving (credit cards and HELOCs) and installment accounts (mortgages and loans)
- Inaccurate status of account, such as a closed account marked as open
- Incorrect payment history, such as a current account labeled past due
- Inaccurate account holder status, such as being listed as an authorized user when you’re a primary account holder
- Incorrect credit limits and balances
- Unknown utility, phone and streaming accounts (when reported through *Experian Boost™)
Inquiries
- Companies that pulled your credit report without your authorization or knowledge, potentially indicating a fraudster applied for an account in your name
Public records
- Bankruptcies, liens, foreclosures, civil suits and judgments that you weren’t involved in
Benefits of monitoring your credit report
If you regularly review your credit reports, you’ll become more familiar with your finances and may find ways to improve your credit score. For instance, you may notice you've missed payments more often than you realized. Seeing a high balance on your credit card may motivate you to adjust your spending to lower your utilization rate. Raising your credit score can increase the chances you’ll qualify for the best financial products like credit cards and loans with competitive rates and rewards.
Another benefit of routinely checking your credit reports is that you can take early action against signs of potential fraud and dispute the errors right away.This can save you the hassle of dealing with bigger issues weeks or months after they occur.
In order to make the credit monitoring process easier, consider signing up for a free or paid credit monitoring service, which alerts you of changes to your credit report. Services like CreditWise®, Experian free credit monitoring and IdentityForce® UltraSecure and UltraSecure+Credit can provide you with an early notice of potential fraud, so you can take steps to protect your personal information.
To learn more about IdentityForce®, visit theirwebsite.
*Results may vary. Some may not see improved scores or approval odds. Not all lenders use Experian credit files, and not all lenders use scores impacted by Experian Boost.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
FAQs
When you review your credit reports, look for changes to your personal information. This includes account details, inquiries and public record data. If something looks suspicious, double check that it's not a mistake on your end, then dispute the error.
When reviewing your credit report, what should you look for? ›
Here's what to double-check:
- Personal or identifying information. This section of your credit report includes your name, address, Social Security number, and date of birth. ...
- Credit accounts. ...
- Inquiry information. ...
- Bankruptcy public records. ...
- Collections accounts.
Know what errors to look for on your credit report
Credit report errors can include the wrong name or address on an account or an incorrect date you made a payment. Learn from the Consumer Financial Protection Bureau (CFPB) about the common types of credit reporting errors.
What should you look at first on your credit report? ›
Carefully scrutinize your credit history to check that the account number, account name, balance amount, payment history, payment due date and payment status are all correct. Check to make sure that the account's current credit limits or original loan amounts are correct.
How can I check my credit report without affecting it? ›
No, requesting your credit report does not hurt your credit score. You can check your credit at no charge at annualcreditreport.com . You can review your credit report online for free once a week, from each of the three nationwide consumer reporting companies (Equifax, Experian, and TransUnion).
What looks bad on a credit check? ›
If you miss a series of regular payments to lenders they may record a default on your report. This can significantly lower your credit score for up to six years. Borrowing more than you can afford. If you can't pay off your debts, you may have to get a Debt Relief Order or Individual Voluntary Arrangement.
How do I make sure my credit report is accurate? ›
You'll want to be sure the information in your report is both accurate and complete. Find out by regularly checking your credit report. You have the right to get free copies of your credit report from each of the three major credit bureaus once every 12 months.
What are red flags on a credit report? ›
A red flag is a pattern, practice, or activity that indicates a possibility of identity theft. These flags produce a three digit score (0-999) that calculates the customer's fraud risk through the credit report. A higher score indicates a lower risk of identity fraud.
Which credit mistakes are the most serious? ›
Which credit mistake is the most serious? Making a late payment or missing a payment completely can have the biggest negative impact on your credit, though it's only reported if you're more than 30 days late. Your score could drop up to 100 points or more depending on how late you are.
How do I find out what's wrong with my credit report? ›
You can get your free credit report from Annual Credit Report. That is the only free place to get your report. You can get it online: AnnualCreditReport.com, or by phone: 1-877-322-8228. You get one free report from each credit reporting company every year.
To check your credit score easily at no cost, you can use websites such as Credit Karma or Credit Sesame. By signing up and creating an account, you can get updates about your credit scores and credit activity such as a drop or increase in your score or the opening or closing of accounts.
What are 5 things you should know about your credit score? ›
Five things that make up your credit score
- Payment history – 35 percent of your FICO score. ...
- The amount you owe – 30 percent of your credit score. ...
- Length of your credit history – 15 percent of your credit score. ...
- Mix of credit in use – 10 percent of your credit score. ...
- New credit – 10 percent of your FICO score.
A credit report is a summary of your credit history, including the types of credit accounts you've had, your payment history and certain other information such as your credit limits.
What is a good credit score to buy a house? ›
What is a good credit score range for buying a home? If your credit score range is between 740 and 850, you are likely to have the widest range of choices and the most attractive interest rates for your mortgage loan.
What affects your credit score the most? ›
Most important: Payment history
Your payment history is one of the most important credit scoring factors and can have the biggest impact on your scores. Having a long history of on-time payments is best for your credit scores, while missing a payment could hurt them.
What is a good FICO? ›
For a score with a range between 300 and 850, a credit score of 700 or above is generally considered good. A score of 800 or above on the same range is considered to be excellent. Most consumers have credit scores that fall between 600 and 750. In 2023, the average FICO® Score☉ in the U.S. reached 715.
What should you look for when evaluating a credit offer? ›
Terms. Making sure you understand—and can deal with—all the terms of your loan offer is essential to a good loan evaluation. The terms include the length of time you have to repay, whether or not you have a fixed or variable interest rate, and the collateral used (if any).
What 5 things are looked at when determining your credit score? ›
Five things that make up your credit score
- Payment history – 35 percent of your FICO score. ...
- The amount you owe – 30 percent of your credit score. ...
- Length of your credit history – 15 percent of your credit score. ...
- Mix of credit in use – 10 percent of your credit score. ...
- New credit – 10 percent of your FICO score.
Each lender has its own method for analyzing a borrower's creditworthiness. Most lenders use the five Cs—character, capacity, capital, collateral, and conditions—when analyzing individual or business credit applications.
