The three major credit agencies collect and sell information about your payment history

Equifax, Experian, and TransUnion are the three companies that maintain credit reports on most Americans. They do not decide whether you get a loan or credit card — lenders do. But the reports these agencies compile directly shape what interest rate you pay, whether you are approved at all, and sometimes whether you can rent an apartment or get hired for a job.

Each agency gathers the same basic information: your payment history on credit cards, loans, and bills; how much debt you currently carry; how long you have had credit accounts; and whether you have missed payments or had accounts sent to collections. They sell this information to lenders, landlords, employers, and insurance companies. You do not pay them. Lenders and other businesses do.

The reports these agencies produce are not always accurate. Mistakes happen — accounts listed twice, payments marked late when they were on time, or someone else's debt mixed into your file. Because errors directly affect your ability to borrow money, it matters to know how to check your report and dispute what is wrong.

Key Takeaways

  • You can view your credit report free once per year from each of the three agencies at AnnualCreditReport.com, which is the only official government-authorized site.
  • Credit reports contain payment history, current debt balances, account age, and negative marks like late payments or collections — information lenders use to decide whether to approve you and what interest rate to charge.
  • Mistakes on your report are common and can be disputed for free by sending a letter to the agency with documentation of the error.
  • Your credit score (a number between 300 and 850) is calculated from the information in your report, but the score itself is not part of the report you receive.

What information appears on your credit report

Your credit report is divided into sections. The first lists your personal information: name, address, Social Security number, and date of birth. This section also shows previous addresses and names you have used.

The second section, called trade lines, lists every credit account in your name — credit cards, car loans, mortgages, personal loans, and store cards. For each account, the report shows the creditor's name, the date you opened it, your credit limit or loan amount, your current balance, and your payment history for the past seven years. A notation like "30" means you were 30 days late on a payment; "60" means 60 days late. A clean account shows "pays as agreed" or similar language.

The third section lists negative marks: accounts sent to collections, charge-offs (debts the lender gave up on), foreclosures, and bankruptcies. These remain on your report for seven years, except bankruptcy, which stays for ten years.

The fourth section shows inquiries — times a lender or creditor checked your report. Hard inquiries happen when you apply for credit and can slightly lower your score. Soft inquiries happen when companies check your report to send you offers and do not affect your score.

How to get your free annual credit report

The federal government requires each of the three agencies to provide you one free report per year. The official site is AnnualCreditReport.com. This is the only authorized source — do not use other sites that claim to offer free reports, as many charge hidden fees or collect your information for marketing.

On AnnualCreditReport.com, you can request reports from all three agencies at once or spread them out over the year. You will answer security questions to verify your identity, then receive your reports online or by mail. The process takes minutes if you do it online.

You receive the report itself — a list of accounts and payment history — but not your credit score. Lenders calculate scores differently, so the score you see on one site may not match what another lender sees. If you want to know your score, you can find free estimates through many banks and credit card companies, though these are approximations.

Understanding negative marks and how long they stay

A late payment appears on your report 30 days after the due date passes. It stays for seven years from the original due date. A single late payment can lower your score by 100 points or more, depending on how recent it is and how high your score was before.

A charge-off happens when a creditor stops trying to collect and writes off the debt as a loss. This does not erase what you owe — the creditor can still sue you or sell the debt to a collection agency. The charge-off stays on your report for seven years.

A collection account appears when a debt is sold to a third-party collector. Even if you pay the collector later, the account remains on your report for seven years from the original delinquency date — the date you first fell behind, not the date you paid.

A bankruptcy stays for ten years. Chapter 7 bankruptcy (where most debts are erased) and Chapter 13 bankruptcy (where you repay some debts on a plan) both remain visible to lenders for a decade, though their impact on your score weakens over time.

How to dispute errors on your report

If you find an error — an account that is not yours, a payment marked late when you paid on time, a balance that is wrong, or a negative mark that should have fallen off — you can dispute it for free. You do not need to hire a credit repair company or pay anyone to do this.

Send a letter to the agency that has the error. Include your name, address, Social Security number, and a clear description of what is wrong. Attach copies (not originals) of documents that support your claim — a cancelled check, a bank statement showing the payment, a receipt, or a loan document. Keep a copy of everything you send.

Mail your letter to the dispute address listed on your credit report. Equifax, Experian, and TransUnion each have different addresses. The agency must investigate within 30 days and contact you with results. If the error is confirmed, it will be removed or corrected. If the agency disagrees, you can add a statement to your report explaining your side.

If the error involves identity theft — accounts opened in your name that you did not create — contact the Federal Trade Commission at IdentityTheft.gov and file a report. This creates an official record that helps when disputing fraudulent accounts.

How your credit score is calculated from your report

Your credit score is a three-digit number (usually between 300 and 850) that summarizes the information in your report. The most common score is the FICO score, used by most lenders. Equifax, Experian, and TransUnion each calculate their own version, which may differ slightly because they do not all receive the same information from creditors.

FICO scores are built from five categories: payment history (35 percent of your score), amounts owed (30 percent), length of credit history (15 percent), credit mix (10 percent), and new credit inquiries (10 percent). Payment history matters most — missing payments or paying late drops your score significantly. Amounts owed means how much of your available credit you are using; using less than 30 percent of your limit is better than using more.

Your score changes as your report changes. Paying a bill late lowers it immediately. Paying off debt raises it over time. Negative marks have the biggest impact when they are recent; a late payment from two years ago hurts less than one from two months ago.

What to do if you find fraud or identity theft on your report

If your report shows accounts you did not open or charges you did not make, act quickly. First, contact the agency that has the fraudulent account and dispute it in writing (as described above). Second, file a report with the Federal Trade Commission at IdentityTheft.gov. Third, contact the creditor directly — call the number on the fraudulent account — and tell them you did not open it.

Consider placing a fraud alert on your report. This tells lenders to take extra steps to verify your identity before opening new accounts in your name. You can place a fraud alert for free by calling any of the three agencies; they will notify the other two. A fraud alert lasts one year and can be renewed.

If fraud continues or you believe your identity has been stolen, you can place a credit freeze. This prevents anyone, including you, from opening new accounts using your Social Security number until you unfreeze it. Freezes are free and last until you remove them. They are stronger protection than fraud alerts but require you to unfreeze before applying for new credit yourself.

Why your credit report matters beyond borrowing

Lenders use your credit report to decide whether to approve you for a mortgage, car loan, or credit card, and what interest rate to charge. A lower score means higher interest rates, which costs you thousands of dollars over the life of a loan. On a $200,000 mortgage, the difference between a 620 score and a 750 score can mean $100 or more per month in interest.

Landlords often check credit reports before renting to you. A history of evictions, collections, or late payments can result in a denied application. Some employers check reports before hiring, particularly for jobs involving money or security. Insurance companies use credit information to set premiums — people with lower scores often pay more for car and home insurance.

Because your report affects so many decisions, checking it once a year and correcting errors is worth the time. The free annual report from AnnualCreditReport.com is the only cost-free, official way to do this.

Frequently Asked Questions

Can I see my credit score for free?

Your annual credit report does not include your score, but many banks, credit card companies, and free websites offer score estimates. These approximations may not match the exact score a lender sees, but they give you a general idea. Credit Karma, NerdWallet, and many credit card issuers provide free estimates.

How long does a late payment hurt my credit score?

A late payment stays on your report for seven years but has the most impact in the first two years. After that, its effect weakens as newer information accumulates. Paying on time going forward gradually rebuilds your score, though the late payment itself does not disappear until seven years have passed.

What if I disagree with the agency's response to my dispute?

If you believe the agency investigated incorrectly, you can add a consumer statement to your report explaining your side of the story. This statement appears whenever your report is viewed. You can also file a complaint with the Consumer Financial Protection Bureau, which investigates agency practices.

Does checking my own credit report lower my score?

No. Checking your own report is a soft inquiry and does not affect your score. Only hard inquiries — when you apply for credit — can lower your score slightly. You should check your report regularly without worrying about the impact.

What is the difference between a fraud alert and a credit freeze?

A fraud alert tells lenders to verify your identity before opening accounts but does not block new accounts. A credit freeze prevents anyone from opening accounts in your name without your permission. Freezes offer stronger protection but require you to unfreeze before applying for credit yourself.