The best way to find out about your credit is to get a copy of your credit report. Information about your credit is collected by three credit reporting agencies. The report will show how much debt you have, if you make payments on time and if you have not paid back your loans. A credit report allows lenders to make objective decisions because it does not show information about your race, religion, medical history, personal lifestyle, political preference and criminal record. Beginning July 1, 2005, consumers can gain access to an annual free credit report at annualcreditreport.com or by calling 877-322-8228. Consumers must pay a small fee to receive their credit scores.

A credit report includes four types of information:

1. Identifying information: your name, current and previous addresses, telephone number, Social Security number, date of birth and current and previous employers.
   
2. Credit information: specific details about your credit cards, student loans and other loans. This information includes the date the account is opened, credit limit or loan amount, balance and monthly payment. The report also shows your payment history during the past several years and the names of anyone else responsible for paying the account, such as a spouse or a co-signer. Late payments, skipped payments, accounts turned over to a collection agency and repossessions appear here. This information is provided by the companies with which you do business.
   
3. Public record information: bankruptcy records, foreclosures, tax liens for unpaid taxes, monetary court judgments (such as lawsuits) and overdue child support. This information comes from public records.
   
4. Inquiries: the names of those who obtained a copy of your credit report and how often you have applied for credit in the past two years. When you order a credit report, you may also see the names of companies that have reviewed your report for “pre-approved” credit offers in the last six months. However, these names will not be given to creditors who request a copy of your report. Creditors only see the inquires you initiate (by applying for a new credit card, for example).

Does information stay on your report forever?
No. Information on your report will rotate off after a set amount of time. Bankruptcy proceedings will remain on a report for 10 years after the final action is taken. Other debts will stay on the report for seven years after the last action is taken.

• Who can access your credit report?
• How do you get a copy of your credit report?
• What if there is an error on your report?

Information in this section was provided by Jon Clayton, Director of Educational Services at Memphis Consumer Credit Association.