Credit Reports in the PNW: Everything You Need to Know

Everyone who has ever opened a credit account for the first time establishes credit and, therefore, has a credit report that is continually updated for the rest of their life. A credit report is a detailed record of a person’s credit history that includes credit accounts, account balances, payment history, and information about late payments or accounts that have been turned over to debt collectors. 

Lenders, insurers, landlords, and even employers use your credit to assess your ability to manage your finances. The most common way they gauge your creditworthiness is by checking your credit score. A credit score is a three-digit number between 300-850 that’s calculated from your credit report.

Understanding credit scores and credit reports is essential since they impact many aspects of your life, such as buying a home or car, renting an apartment, and getting a job.

Understanding Credit Reports and Types of Scores

Different types of credit reports are used for various types of borrowing and transactions. Each type of credit report is used to evaluate financial responsibility and has an impact on loan approvals, interest rates, and employment opportunities:

• Consumer credit reports are used by credit card companies, lenders, insurance underwriters, and employers to assess your creditworthiness. These reports include details about your credit history, such as open and closed credit accounts, payment history, and other public records.
• Business credit reports assess a company’s creditworthiness, providing information about the business’s financial health and credit activity for business loans and partnerships.
• Specialized credit reports are for specific applications, such as credit inquiries, hiring, medical debt, and specialized insurance.

Many companies use credit score data to evaluate creditworthiness, but lenders typically look at FICO scores. A FICO score is similar to—but not the same as—your credit score. FICO scores assess risk based on on-time payment history, payment history, credit utilization, length of credit history, credit mix, and recent credit inquiries. Like credit scores, FICO scores also range from 300-850, and with a higher FICO score, you can get better loan terms and lower interest rates.

Download our guide: Understanding Credit: the Good, the Bad, and the Ugly for tips on managing your credit.

If you live in the Pacific Northwest, the best way to maintain a high credit and FICO score is to monitor your credit closely. Washington and Oregon residents can maintain a positive financial history by making timely payments, using credit responsibly, and monitoring their credit reports to ensure they catch errors early. Set calendar reminders to stay current on your credit card and loan payment due dates.

Credit Reporting Regulations in Washington and Oregon

Residents of Washington and Oregon have specific credit protections under state and federal law. They are protected from discriminatory practices and have fair access to credit report information.

Everyone is entitled to a free credit report from each of the three major credit bureaus once a year. It’s a good idea to stagger these requests among each of the bureaus to monitor your credit throughout the year.

Washington state residents have additional rights. They can request to see the sources of their credit data, dispute incorrect information, and request corrections to their credit report be made within a specific time frame. Washington law also limits how long certain credit information remains on your credit report. Most information is removed after seven years, and bankruptcy is removed after 10 years.

Oregon has additional privacy laws to protect consumers, including limiting access to sensitive information, such as medical records. In addition to access to an annual credit report from the three credit bureaus, consumers can also place a “security freeze” on their credit to protect against fraud and identity theft.

Understanding Credit Bureaus

Consumer credit is monitored by three credit bureaus that gather information and generate credit scores. Each credit bureau issues individual credit reports using collected data, so there are slight differences in credit scores and reports.

TransUnion 

TransUnion gathers information from creditors and public records to generate credit reports about consumers. In addition to credit monitoring, TransUnion offers educational tools, fraud alerts, credit freezes, and other services to keep consumers informed and protect their credit.

Equifax

Equifax is a global credit bureau that generates consumer credit scores and provides credit monitoring and identity protection services. Equifax is known for issuing credit reports highlighting new activity and tracking activity to provide alerts and protection against identity theft and fraud.

Experian 

Experian offers personalized financial products for managing and protecting your credit and providing credit scores and reports. Experian offers services to help consumers improve their credit and understand and maintain their credit health.

How to Check Your Credit Report

Monitoring your credit is the best way to protect yourself and ensure financial health. You can request free annual credit reports from the three credit bureaus. You can also get free online weekly reports from TransUnion, Equifax, and Experian via AnnualCreditReport.com. You can access credit reports online, by phone, or by mail. To track your credit changes, consider requesting a credit report from one of the three credit bureaus every four months.

By regularly checking your credit report, you can catch inaccuracies and ensure there are no unauthorized accounts. You can file a dispute directly with the credit bureau when you see an error. Be sure to include supporting documentation. Most errors are resolved within 30 days.

It pays to be informed about your credit and be proactive about your credit health. Monitor your credit regularly, and if you live in Washington or Oregon, take advantage of the available protections for added peace of mind.

Managing your credit isn’t difficult. To learn more, download our guide: Understanding Credit: the Good, the Bad, and the Ugly .