Credit & Money Management
A Peek at Your Personal Dossier
Soon you can get a free credit report. Here's why you shouldn't wait.
By Pat Mertz Esswein, Associate Editor
From Kiplinger's Personal Finance magazine, November 2004
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A common problem is the "mixed file" -- that is, one that includes someone else's information in your report. It's not just people with the same name or Juniors and Seniors that get mixed up, either -- although that's troubling enough, particularly if you have a common name. But credit bureaus actually compile two separate files. The one for consumers relies on exact matches of names and other identifying data. But the one for a potential creditor, landlord or employer stretches to include "soft matches" and "possibility files" in an attempt to catch records of people who might be you.
For example, Christopher Kittell, a lawyer in Clarksdale, Miss., tells the story of an 18-year-old Alabama man who was turned down when he applied for his first credit card. Although the credit report sent to him with the denial was clean, the report sent to the creditor included delinquent accounts opened when he was still a child. The credit bureau had matched the young Alabamian's statistics with those of an older man with whom he shared not only the same name, but also seven of nine social-security-number digits.
Scour your record
To see what's in your record, order a so-called three-in-one version that presents each bureau's information about you in side-by-side columns for easy comparison.
We found Equifax's 3-in-1 Credit Report with Score Power to be the most user-friendly. It's clear and well organized and allows you to file a dispute -- that is, demand a correction -- online with any of the three bureaus. The report includes your credit score, a numerical summary of your credit history that gives lenders an instant picture of your creditworthiness. It also provides creditor contact information, a convenient feature because you also need to challenge the faulty information at its source. Review the report line by line, section by section:
Personal information. This includes your full name, any known aliases, past and present addresses, social security number, birth date or age, and past and present employers. Addresses that don't belong to you could be a clue to identity theft or improperly merged information. Employment history that doesn't jibe with your résumé could raise a red flag with a prospective employer.
Account history by creditor, including your monthly payment history -- on time or delinquent -- for the past two years. Are there any accounts or late payments that don't belong to you?
Public records will reveal court records of bankruptcy, tax liens or monetary judgments against you. Are you wrongly accused? Are there issues that you know have been resolved but still appear to be open?
Errors of omission. If up-to-date payments from creditors aren't shown -- some credit unions and smaller retailers don't routinely report--you can ask them to send the information to the credit bureaus to beef up your record.
Recent inquiries shows a list of lenders or others who have requested access to your report within the past year (two years for employment purposes), including creditors that have sent pre-approved offers. Is anyone listed who doesn't have a legitimate purpose to access your file?
