How to get your free credit report, check it and dispute errors

Your credit report is the record of how you have handled debt: credit cards, loans, late payments and accounts sent to collections. Lenders, landlords and some insurers check it. A single error can cost you a higher rate or a denied application, so it is worth reviewing regularly.

Credit report vs. credit score

• The report is the detailed history.
• The score is a number a model (such as FICO or VantageScore) calculates from that report.

Pulling your own report or checking your own score does not lower it; it is a soft inquiry.

Where to get it for free

There are three nationwide credit bureaus in the U.S.: Equifax, Experian and TransUnion. Each may hold slightly different information.

The site authorized by federal law to request them for free is AnnualCreditReport.com. According to the Federal Trade Commission (FTC), all three bureaus offer free reports there every week. Be wary of look-alike sites that ask for a credit card or sign you up for paid services.

What to check, section by section

Personal information

Name and name variations, addresses, date of birth and employers. An address where you never lived can signal a mixed file or possible identity theft.

Accounts

For every card and loan, confirm:

• The account is yours.
• Open date and status (open, closed, paid).
• Balance and credit limit.
• Payment history: no late payments you did not make.

Inquiries

Hard inquiries appear when you apply for credit. If you see one from a company you never applied with, investigate.

Public records and collections

Make sure collection accounts are yours and the balance is right. In general, negative information can stay up to seven years and some bankruptcies up to ten.

How to dispute a credit report error

The Fair Credit Reporting Act (FCRA) gives you the right to dispute inaccurate or incomplete information.

1. Gather proof: statements, payment receipts, letters.
2. Dispute with the bureau that shows the error. All three accept disputes online, by mail or by phone. Explain what is wrong and why, and attach copies (never originals).
3. Also dispute with the company that reported it (the bank or lender).
4. Keep records: dates, confirmation numbers and copies of everything you send.

The bureau generally has 30 days to investigate and tell you the result. If information is corrected, you can ask for an updated report to be sent to anyone who checked it recently.

If you are not satisfied, you can ask to add a brief statement to your file and submit a complaint to the CFPB.

Signs of identity theft

Unfamiliar accounts, inquiries you did not authorize or strange addresses can indicate identity theft. The FTC offers a reporting process and recovery plan at IdentityTheft.gov. You can also place a free credit freeze with each bureau to stop new accounts from being opened in your name.

How often to check

A good habit is to check each bureau at least once a year and, especially, a few months before applying for a big loan such as a mortgage. That gives you time to fix errors. Then learn what moves your score in what affects your credit score.