How to read your credit report | Earnest

How to read your credit report

By Authors at Earnest | Published on October 21, 2025

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As soon as you take out your first student loan or get your first credit card, you activate a paper trail that documents all your experience with that debt. This is called a credit report — and over time this report will have a big impact on your financial life.

Your credit report can be used by a potential employer to determine how responsible you are and whether you’ll make a reliable hire. It can also determine the rates you’ll get on education loans, car loans, mortgages, and more. If you have bad credit (or no credit), that can make these loans more expensive. It can also make it tough to get certain types of insurance, rent an apartment, or qualify for credit cards. If you have good credit, on the other hand, you’re more likely to qualify for low interest rates, higher credit card limits, and other perks.

So, how can you figure out whether you have good credit or not? The key is knowing how to check your credit report. Here’s what you need to know.

Is a credit report like a financial report card for adults?

Sort of! Except it’s only about the credit portion of your personal finances, i.e. everything to do with borrowing or owing money. It does not include information about your investments, income, savings, or cash flow.

The information on your credit report comes from two places: creditors and public records. Creditors — like banks, credit card companies, or online lenders — automatically gather information about accounts you’ve opened. They regularly report that information to organizations called “credit bureaus.” There are three main American credit bureaus: Experian, Equifax, and Transunion. Each of these bureaus uses the reported information to generate a credit report (and an overall credit score). Both your credit report and credit score are used as summaries for your financial health.

Other institutions, such as utility companies, and auto loan companies may also report information about your accounts. If you’ve signed up for a rent-reporting service to boost your credit, your landlord may send in information, as well. Finally, property and court records offices may report on your activity (for example, if you purchase a home, or if you recently filed for bankruptcy.)

Why is it important to check your credit report?

Checking your credit report can give you an idea of what kinds of interest rates you might qualify for, whether your credit accounts are in good standing, and how far you have to go to achieve your dream credit score. But that’s not the only reason to do a regular checkup. If you’re a victim of identity theft, you might see evidence pop up on your credit report before you start to notice money going missing. Keep an eye out for “hard inquiries,” i.e., formal requests to open new credit lines, made in your name. If you spot any suspicious activity, you can act fast to protect your savings from bad actors.

The other reason to check your credit is that credit reporting errors are extremely common. Some are as minor as incorrect addresses or misspellings. Others are as serious as a botched social security number or an error that says you owe way more money than you actually do. The more often you check your credit report, the faster you can dispute these errors and get them fixed.

Where can you get your credit report?

You can currently pull a free copy of your credit report once per week via annualcreditreport.com. (It used to be free just once per year, hence the website’s name.) You can also request your credit report directly from each of the three main credit reporting agencies’ websites:

All three credit bureaus have a similar reporting structure, but there are some differences in the information they receive. Creditors may not report information at the same speed, and some creditors only report to one or two bureaus, rather than all three. This means you will want to check your reports from all three on a regular basis.

Be wary of websites that say they will provide a free credit report, but require you to enter credit/debit card information. Some of these sites may be scams. If you haven’t pulled your report recently, you should be entitled to a free one without entering any payment details.

What kind of information shows up on your credit report?

Your credit report includes all kinds of information about your financial life. This information is typically broken into a few main parts:

Personal Information

This section is relatively straightforward. It usually includes the date of the report, a report ID number, and basic personal identifying information like:

If you notice anything that looks unusual in this section, including any addresses you don’t recognize, it may be a sign of fraudulent activity. Report these errors to the relevant credit bureau, then consider freezing your credit to prevent future misuse.

Public records

This section includes things like:

If you have been in court recently for financial matters, any rulings will appear in this section. Negative information, like a bankruptcy, can have a severe impact on your credit. Bankruptcies typically stay on a credit report for seven to ten years, depending on the type.

Credit history and account information

Your credit report will also include a list of all your credit accounts, including revolving credit accounts (i.e. credit cards and other lines of credit with a limit that resets after each payment) and installment credit accounts (i.e. loans that you pay off via a series of payments over time.)

The account section may be split up into a few subsections. You may see a section containing all your accounts in good standing, and another containing accounts in bad standing. Accounts in bad standing are those that have been reported past due, are in danger of defaulting, or currently have a late payment.

Recently closed accounts may also appear in the account information section of your report. You’ll also see a list of charged-off accounts and any accounts that have been sent to collection agencies.

Double check all this information. If you see an account or account number you don’t recognize, report it right away. Ditto for balances or credit limits. If these are listed incorrectly, that could affect your credit utilization ratio, which is a big factor in the way many credit scoring models — including the FICO score — calculate your creditworthiness.

Credit checks

Your credit report also lists all the recent credit inquiries that have been made on your behalf. Every time a financial institution, employer, or potential lender reviews your credit history, something called an “inquiry” is created on your report. Most credit reporting bureaus break these credit inquiries (also called “credit checks”) into two categories:

Requests initiated by you are generated during processes like applying for a mortgage or personal loan, or to obtain a new phone number with a mobile company. These are typically considered “hard inquiries” and can drop your credit score by a few points.

Requests that may not have been initiated by you are generally for things like pre-approved offers, account monitoring done by existing creditors, and inquiries you make into your own credit. If a company checks your credit without your permission, it’s typically considered a “soft inquiry” and doesn’t affect your credit score.

Student loans and refinancing for all kinds of credit

Understanding how to read your credit report is one of the first steps to building a solid financial foundation — and enjoying all of the benefits that come along with it. Those benefits include low-cost student loans, refinance loans, and other types of credit. If you have a strong credit history and a decent credit score, you’ll likely be able to qualify for private student loans on your own through lenders like Earnest. If you don’t, you’ll still be able to qualify for federal student loans (which offer generous borrower protections and don’t require a credit score). You can also apply for private loans with a cosigner. As long as your cosigner has a solid credit report, you can piggy-back off their creditworthiness to potentially secure lower rates and better terms on student loans taken out in your name.

If you already have student loans, a strong credit history can help you refinance them at a lower rate. Securing a lower rate could help you save money over the life of your loans and even get out of debt faster. Want to see if you qualify? Skim through our eligibility requirements, then get a rate estimate for free. It just takes a few minutes, and it only involves a soft inquiry — which means it won’t affect your credit score.