Columbia University Student Financial Services

Your Credit History and Credit Report

Individuals establish their credit history by borrowing money or charging purchases. Typically, anyone who has ever used a credit card issued in his or her own name has established a personal credit history. Financial institutions and major retail stores report their customers’ credit information to national credit bureaus that, in turn, compile the information in the form of a credit report. A credit report is simply a record of every credit card, retail account, student and personal loan, and other credit accounts made or established in your name. Whenever you apply for a loan, your credit report will most likely be reviewed. In reviewing your credit report, the lender is trying to determine your ability and willingness to pay based on your payment history. A good credit record indicates that you are likely to repay the loan for which you are currently applying.

Credit Scoring

Today most lenders may use a credit score to determine eligibility for a loan. This is a numerical score based on a statistical analysis of the data contained in a credit report. Lenders that use a credit score typically require applicants to meet a minimum score in order to qualify for their loan program.

Checking Your Credit

For your own protection, you should request a copy of your credit report from a local and/or national credit bureau and review it carefully. Contact the reporting credit bureau and creditor(s) immediately if you discover any inaccuracies.

Credit Bureaus

The three major national credit bureaus are Equifax (800-685-1111 or www.equifax.com), Experian (formerly TRW, 888-397-3742 or www.experian.com), and TransUnion (800-888-4213 or www.transunion.com). There are also hundreds of smaller local credit reporting agencies. Telephone numbers for the agencies in your area are located in the Yellow Pages of your phone directory under the listing “Credit Reporting Agencies.”