Digging Into Your Credit Report

Your credit report determines if you get approved for new credit cards or loans and what kind of interest rate you get. Creditors report all kinds of information about you to the three major credit-reporting bureaus, Equifax, TransUnion and Experian. You can benefit by checking your own credit report at least once a year. Looking at your report will show you where to improve, what accounts you should pay off and what you did well in the past.

Who Reports

Any of your creditors can report information about you to the credit bureaus. Credit card companies, loan companies and mortgagors report your history. However, some retail credit cards and gas cards may not appear on your credit report. CNNMoney reports that as of 2011, your landlord can report your rent payments to your Experian credit report. Generally, banks do not report information about your checking or savings account to your credit report unless you default on the account. Utility providers, wireless service providers and cable TV companies also report only if you default on your account.

What's Included

Your credit report will show every credit account you have that reported any information on you in the past seven years, according to Bankrate.com. Credit card companies report your total available balance, your total debt and your payment history. Loan and mortgage companies report your loan amount, the amount paid and payment history. Anytime you apply for new credit, it will appear as an inquiry on your credit report. If you've had serious credit problems, such as bankruptcy, this also appears on your report. Bankrate.com reports that as of 2008, bankruptcy can stay on your report for up to 10 years.

Calculating Your Credit Score

Your credit score rates your financial past in a three-digit number based on your credit report. Fair Isaac Corp., the company that developed the FICO credit score, uses several key points from your report to give you a ranking. MyFICO.com reports that payment history makes up 35 percent of your score, the amount you owe makes up 30 percent, the length of your credit history makes up 15 percent, how often you applied for credit makes up 10 percent and the types of credit you have make up another 10 percent.

Tips

You can get a free copy of your credit report from each of the three credit bureaus, Equifax, TransUnion and Experian. By law, the companies must give you one free report each year. You can order your copy through the Annual Credit Report website (see Resource). Once you review your report, you can improve your history and credit score by keeping a low balance on your credit card, paying all of your bills on time and rarely applying for new credit cards or loans.