CHASE - CREDITCARDS

Understanding Your Credit Report and Score

What is a credit report?

A credit report is issued by a credit bureau or credit-reporting agency. It is the official record of your credit history—how much money you owe to your creditors, how you repay your debts, and other information related to your finances.

How can I get a copy of my credit report?

You can obtain a free copy of your credit report annually from each of the three nationwide consumer reporting agencies—Equifax, Experian, and TransUnion—according to the Fair Credit Reporting Act (FCRA). To obtain your reports, you can go to http://www.annualcreditreport.com/ , call 1-877-322-8228, or write to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA  30348-5281.

What is a credit or FICO score?

The FICO score, developed by the Fair Isaac Corporation, is the most well-known credit score. FICO is a credit scoring system used by the three nationwide consumer-reporting agencies listed above. Your credit score is based on calculations from the information in your credit report. FICO scores range from 300 to 850, with the higher scores indicating better credit risk for lenders. Most people score in the 600s and 700s.

How can I improve my credit score?

Your credit score is determined by a number of financial factors, but it is mainly influenced by your debt repayment history and how much money you owe. Your financial transactions can affect your score positively or negatively. As you make payments on time, pay off balances, and avoid excessive credit inquiries (such as for car loans and new credit cards) you improve your score. On the other hand, when you allow debt to pile up, owe too much, or have too much credit outstanding, you can lower your score.

How does my credit score affect me?

Lenders use your credit score to evaluate the level of risk in making you a loan. Higher risk borrowers generally receive higher interest rates on loans. So, your credit score affects the interest rate and your monthly payments on loans, charge accounts, and credit cards.

In addition, prospective employers and landlords may request your credit report.

What can I do if I find inaccuracies on my credit report?

You have the right to explain or correct information on any of your credit reports. The credit bureaus must look into your request for corrections and remove anything that is inaccurate or no longer verifiable. You may also submit a statement of explanation that the credit bureaus must retain in your file. You can find contact information for each of the credit bureaus at http://www.annualcreditreport.com/.

More General Credit Information