How to Read a Credit Report

Your credit report is more than just a list of numbers — it’s a snapshot of your financial reputation. Lenders, landlords, insurers, and even some employers use it to determine whether they want to work with you and on what terms. A strong, accurate credit report can mean better loan approvals, lower interest rates, and even more career opportunities. On the flip side, mistakes or outdated information can hurt your score and cost you money.

The good news? You can (and should) review your credit report regularly — and it’s easier than you think.

Get Your Free Credit Reports

You’re entitled to one free credit report from each of the three major credit bureaus — Experian, Equifax, and TransUnion — every year through AnnualCreditReport.com. This is the official site authorized by the federal government. Sometimes, after major data breaches or in periods of economic uncertainty, you may be able to access them more frequently. Instead of requesting all three reports at once, you can stagger them to monitor your credit year-round without paying a cent.

Verify Your Personal Information

Once you have your reports, check that your: full name is spelled correctly (watch for variations that could indicate errors or fraud); Social Security number matches your own; current and past addresses are correct; employer information is accurate and up to date. Incorrect personal information can be a red flag for identity theft or clerical mistakes that may impact your credit profile.

Review All Accounts Carefully

The bulk of your credit report is your credit accounts — credit cards, loans, mortgages, and other credit lines. For each one, check the account type (credit card, mortgage, auto loan, etc.); current balance and credit limit; payment history (including any late or missed payments); and whether the status is open or closed. Confirm that you actually opened the account, as unrecognized accounts could signal fraud or that an error that needs to be addressed.

Pay Special Attention to Collections

Collection accounts can have a major impact on your credit score. If you spot one you don’t recognize, contact the collection agency immediately and request debt validation. Under the Fair Debt Collection Practices Act (FDCPA), you have the right to request verification within 30 days of receiving notice of the debt. Even if the collection account is yours, verify that the amount owed and payment status are accurate.

Dispute Any Errors

If you find an error — such as an account that isn’t yours, incorrect late payments, or outdated information — file a dispute directly with the credit bureau that issued the report. You can usually do this online, by mail, or over the phone. The bureau is required by law to investigate your claim generally within 30 days. Once they complete the investigation, they must notify you of the results and provide an updated copy of your credit report if changes were made.

Follow Up and Monitor Regularly

If the error isn’t resolved, you can submit additional documentation or escalate your complaint to the Consumer Financial Protection Bureau (CFPB). Don’t assume the issue will fix itself. You should review your credit reports at least once a year, but more frequent checks can be helpful if you’re applying for a major loan soon, rebuilding your credit, or monitoring for identity theft after a breach.

Credit Report Review Checklist

• Get reports at AnnualCreditReport.com (Experian, Equifax, TransUnion).
• Verify personal info: name, SSN, addresses, employer.
• Review accounts: balances, limits, payment history.
• Watch for unrecognized accounts or fraudulent activity.
• Examine collections; request validation if needed.
• Dispute errors with the reporting bureau promptly.
• Follow up within 30 days if there’s no resolution.
• Review annually (or quarterly for active monitoring).

You can easily keep tabs on your credit and credit score throughout the year through your Town & Country online and mobile banking when you sign up for Credit Score by SavvyMoney—a free credit monitoring tool available to all members.

Ultimately, you’re the one responsible for making sure your credit report is accurate. By reviewing it regularly, confirming your information, and addressing any mistakes promptly, you can protect your financial health and position yourself for better opportunities in the future.