What Kind of Credit Report Information is in My File?

Reader Question: "I plan to get a copy of my credit report soon, so I can find out if I'm qualified for a mortgage loan. I was wondering what kinds of credit report information I can find in my file. Does it show my score, or just a bunch of historical data."

There are a couple of things we need to talk about, based on your question. I want to make sure you understand how all of this stuff ties together. In order to do that, we need to talk about credit reports, scores, and the mortgage approval process.

Your credit report information does not include your score. The score is based on the information found within the reports, but they are two different things. You actually have three different reports -- one produced by Experian, one that come from TransUnion, and one from Equifax.

To confuse matters further, these three companies do not share data. So the information found in one credit report might be different from the information in the other two. Redundant? Yes. Confusing? Yes. But that's just the reality of it.

Here's what it all boils down to. Your credit report information comes from your own financial activity. This data is later used to produce your credit scores (you have several of those as well). The image below shows how all of these things are connected.

Finding False Information in Your Reports

In a perfect world, your credit report information would be 100% accurate at all times. There would never be any errors, omissions or inaccuracies. But we do not live in such a world, and mistakes are common within the credit reporting industry. That's why you should get a copy of your reports once a year to check them for accuracy. This is especially important if you plan to apply for a mortgage loan in the near future. The last thing you want is to have your application rejected because of false information in your credit reports.

This is why I recommend checking your credit history at least a year before you plan to buy a home, if at all possible. It gives you time to make any corrections that are necessary. Here's what you should do to correct such errors.

So, what kind of credit report information do these companies maintain? Here's a short list of items that might appear in your file:

• Personal information about you. This includes your name, Social Security Number, current address, etc.
• Information about your credit history. This includes any cards you have used over the years, current balances, any missed payments, etc.
• Public records. This includes any legal judgments that have been made against you (of a financial nature), such as bankruptcy, tax liens, etc.
• Inquiries. Whenever somebody "runs your credit," it will show up on your report.

This is by no means the only information in your credit reports -- just the most important stuff. If you want to learn more about these key sections of your report, check out this article.

Questions About Credit Reports

If you have any questions about personal credit, as it applies to mortgages and home buying, feel free to send it to us. You might also want to review the big library of articles and Q&A sessions on our main website.

Remember, your credit report information is a byproduct of your own actions. If you establish good financial habits for yourself, and you use your credit sparingly and responsibly, then you will have positive information in your reports. This will help you achieve a good FICO score, which in turn will help you secure a low interest rate on your mortgage loan. But it all starts with you.

Must read: The Truth About Credit Reports