A credit report isn’t something most of us probably think of very often. We know it’s something that lenders use to make decisions about extending us lines of credit, we know that it is pulled when we apply for a credit card, we know that it is used when we want to buy a house. But, do we really know what a credit report involves. Keep reading, you’ll learn:

Personal information: A credit report contains a lot of personal information, including past and present addresses, former names (such as maiden name), employment history and salary history. It doesn’t contain race, medical information, sexual orientation, or criminal information. Even if you are married, your credit report should not include any information about your spouse; they have a separate credit report filled with only their information. Accuracy of your personal information, on your credit report, is important.

A Credit Score: Though not all of them do, most credit reports do contain a credit score. This three digit number is calculated based on a variety of things, including amount of debt you are in, credit limits, and how timely you are about credit card payments.

Account Reported on a Monthly Basis: All your accounts reported on a monthly basis, include the type of account, the maximum credit allowed per account, name of your creditor, account number, date the account was opened, your payment history (including if you routinely pay late or if you have ever defaulted on a loan), current balances, credit limits, loans (including home loans, business loans, bank loans, student loans, etc.), credit cards, department store credit, credit from oil and gas companies, are listed on your credit report.

Account Reported As Defaulted: Any account that you have defaulted on in the past will be reported on your credit report. This includes type of account, name of creditor, account number, and your delinquency status. These may be reported by landlords, utility companies, insurance companies, hospitals, and retailers.

Public Records: Public records, available to anyone, include lawsuits (divorces, evictions, legal proceedings), court judgments, bankruptcies, foreclosures, tax liens, and wage garnishments. Child support delinquencies are also reported. Most negative information will be removed after seven years, by law. Bankruptcies can remain for up to 10 years.

Inquiries: Inquiries are the last item on your credit report. This lists the names of people (creditors, employers, insurance companies, etc.) that have requested your credit report over the past two years. The inquiries are usually placed in one or two categories. The first category involves inquiries that you, the consumer, see. This includes names of creditors who have pulled your credit and instance where you have requested to view your own credit report. The kinds of inquiries are called “soft inquiries.”

The other type of credit inquiries are “hard inquiries.” These involve the items sent to employers and creditors, creditors who have pulled your credit after you have applied for credit from them. In general, credit reports with “hard inquiries” aren’t looked at favorably by other creditors. The reason for this is because hard inquiries imply that you are trying to apply for credit wherever you can get it. They can make you look desperate. For this reason, you should be cautious whenever you shop for new credit.

Your credit report contains a lot of information, information that can be valuable to you. Pulling your credit at least once a year, and going over it, can help you learn quite a bit about your finances, and learn how to keep them in check.