EyeOnWhat it means
A credit report lists the information that lenders and other organisations have reported about you. It normally includes identifying details, current and closed accounts, balances, limits, payment history, public records such as court judgments or insolvency entries where they apply, and a list of organisations that have checked the file.
Because several agencies can hold files on the same person, the reports may not match exactly. A lender may report to one agency and not another.
How it works
Lenders send account updates to the agencies, usually monthly. Agencies combine those updates with other records, and then organisations you apply to can request a copy of the file, with the right legal basis, to help assess an application.
Many countries give individuals a right to see their own report, and some provide it free on a regular basis. A report is the source material; a credit score is calculated from it.
A simple example
Suppose you open a report and see a store card you do not recognise. That could be an old account you forgot, an error, or a sign that someone has used your details. Reading the report is how you find out which, and the usual next step is to contact the lender or agency listed using their formal dispute process.
Things worth checking
- Check names, addresses and account lists carefully, because small mix-ups can look like larger problems.
- Closed and settled accounts can still appear, often for several years. How long varies by country.
- Addresses you share with other people can create links on a file. Make sure any links are accurate.
- If you find an error, keep copies of what you send and the dates you send them.
How it varies by country
Who holds credit reports, what they contain, how long entries stay and what rights you have to see and correct them all depend on local law. Look up the agencies and rules that apply where you live.