Credit FAQ

Understanding Your Credit Score

What is a credit score?

A credit score is a three-digit number that summarizes your credit history at a single point in time. Lenders, insurers, landlords, and other commercial users may rely on credit scores to predict how likely you are to repay borrowed money.

What's a good credit score?

Both VantageScore and FICO scores range from 300 to 850. Higher scores generally indicate lower risk. The exact thresholds for "good" credit vary by lender, but the following ranges are widely used for VantageScore 3.0:

• 300–600 — Subprime
• 601–660 — Near prime
• 661–780 — Prime
• 781–850 — Superprime

What's the difference between VantageScore and FICO?

VantageScore and FICO are two different families of credit scoring models. Both look at similar information from your credit file, but they weigh and combine that information differently. RefreshMonitoring shows you educational credit scores calculated using the VantageScore 3.0 model from each of the three credit bureaus.

Most lenders use some version of the FICO Score to make lending decisions. The scores you see in RefreshMonitoring may differ — sometimes meaningfully — from the scores a lender uses to evaluate you.

What factors affect my credit score?

Credit scoring models generally weigh five categories of information from your credit report:

• Payment history — whether you've paid past credit accounts on time
• Credit utilization — how much of your available credit you're currently using
• Length of credit history — how long your credit accounts have been open
• Credit mix — the variety of credit types on your report (cards, loans, mortgages)
• New credit — recent inquiries and recently opened accounts

The exact weight assigned to each category varies by scoring model.

Why do I have different scores from different bureaus?

Each of the three nationwide credit reporting agencies maintains its own credit file on you. Creditors are not required to report to all three, and reporting timing can vary. As a result, the underlying data the scoring model sees can differ at each bureau, producing different scores even when calculated with the same model on the same day.

How often do credit scores change?

Credit scores can change whenever the underlying information in your credit file changes. Most lenders and credit reporters update accounts roughly once a month. Your RefreshMonitoring scores generally refresh monthly while your subscription is active.

Understanding Your Credit Report

What's on a credit report?

A credit report contains the information that the three nationwide credit reporting agencies have collected about your credit history, including:

• Personal identifying information — names, addresses, date of birth, Social Security number, employment information
• Tradeline information — open and closed credit accounts, balances, credit limits, payment history
• Public records — bankruptcies
• Collection accounts — debts that have been turned over to collection agencies
• Inquiries — entities that have requested your credit file

Who creates my credit report?

The three nationwide credit reporting agencies — Equifax, Experian, and TransUnion — compile your credit reports using information furnished by lenders, creditors, debt collectors, and certain public-record sources.

How long does information stay on my credit report?

Under the federal Fair Credit Reporting Act, most negative information may remain on your credit report for up to seven years from the date the account first became delinquent. Bankruptcy information may remain for up to ten years. Positive account information may remain indefinitely while the account is open, and for a period after closure.

What's the difference between a credit report and a credit score?

A credit report is the underlying record of your credit history. A credit score is a number calculated from the information in your report. You can have multiple scores from the same report depending on which scoring model is applied.

How do I get my free annual credit report?

Under federal law, you are entitled to one free copy of your credit report from each of the three nationwide credit reporting agencies every twelve months. You can request your free reports at AnnualCreditReport.com, the only federally authorized source. A credit score is not included with the free annual report.

The Three Credit Bureaus

Who are Equifax, Experian, and TransUnion?

Equifax, Experian, and TransUnion are the three nationwide consumer credit reporting agencies. Each is an independent company that collects, maintains, and reports credit information about consumers in the United States.

Why do I have three different credit reports?

The three bureaus operate independently and do not share data with each other in real time. A creditor may report to one bureau, two bureaus, all three, or none. Differences across the three reports are normal and expected.

Are the credit bureaus connected to RefreshMonitoring?

No. The three credit bureaus are independent of RefreshMonitoring. We retrieve your reports and scores from them through our credit data integration provider, but we have no control over the accuracy or completeness of the information they hold about you.

Credit Inquiries

What's the difference between a hard and soft inquiry?

A hard inquiry (also called a "hard pull") happens when you apply for credit — a loan, a credit card, a mortgage, a rental application that includes a credit check. Hard inquiries may affect your credit score.

A soft inquiry (also called a "soft pull") happens when your credit is checked for reasons unrelated to a new credit application — for example, when you check your own credit, when a lender pre-screens you for a promotional offer, or when an existing creditor reviews your account. Soft inquiries do not affect your credit score.

Pulling your credit through RefreshMonitoring is a soft inquiry. Checking your own credit does not lower your score.

How long do inquiries stay on my report?

Hard inquiries generally remain on your credit report for two years, though their impact on your credit score typically fades well before that.

Will rate-shopping for a mortgage or auto loan hurt my credit?

Most scoring models treat multiple inquiries of the same type within a short window (typically 14 to 45 days, depending on the model) as a single inquiry, recognizing that consumers commonly shop multiple lenders before choosing one. Check the scoring model and rate-shopping window most likely to apply to your application before assuming any particular result.

Errors and Disputes

What if I find an error on my credit report?

You have the right under the federal Fair Credit Reporting Act to dispute inaccurate or incomplete information directly with the credit reporting agency that issued the report, at no cost. Each of Equifax, Experian, and TransUnion accepts disputes through their websites, by mail, and by phone.

How does the FCRA dispute process work?

When you submit a dispute to a credit reporting agency, the agency generally must investigate the disputed item within 30 days. The agency contacts the furnisher of the information (for example, the lender that reported the account), reviews any evidence you provide, and either verifies, corrects, or removes the information based on the investigation. If the information cannot be verified, the agency must remove or correct it.

What's the 30-day rule?

The "30-day rule" refers to the period during which credit reporting agencies must complete their investigation of a consumer dispute under the federal Fair Credit Reporting Act. The period may be extended to 45 days in limited circumstances, such as when additional information is provided during the investigation.

How common are credit report errors?

The Federal Trade Commission has reported that 1 in 5 consumers have an error on at least one of their three credit reports. Regularly reviewing your reports helps you spot errors that may be affecting your score or your ability to obtain credit.

Does RefreshMonitoring file disputes for me?

No. RefreshMonitoring is a monitoring and informational service. We do not submit disputes on your behalf. You file disputes directly with the bureau that issued the report at no cost.

Identity Theft and Fraud

What is identity theft?

Identity theft happens when someone uses your personal information — such as your name, Social Security number, or financial account information — without your permission, typically to obtain credit, goods, services, or government benefits.

What are common signs of identity theft on a credit report?

• New accounts you didn't open
• Inquiries from creditors you didn't apply to
• Addresses you've never lived at
• Employers you've never worked for
• Balances or activity on existing accounts you didn't authorize

What's the difference between a fraud alert and a security freeze?

A fraud alert tells creditors who pull your credit file to take extra steps to verify your identity before extending new credit. Fraud alerts are free. Placing a fraud alert with any one of the three credit bureaus is enough — that bureau must notify the other two.

A security freeze restricts access to your credit file entirely, preventing most new creditors from pulling it until you lift the freeze. Security freezes are free and must be placed with each of Equifax, Experian, and TransUnion individually.

What do I do if I suspect identity theft?

Visit IdentityTheft.gov, the federal government's central resource for identity-theft recovery. The site walks you through reporting the theft to the Federal Trade Commission, placing fraud alerts or security freezes, disputing fraudulent accounts, and creating a personalized recovery plan.

Federal Rights at a Glance

The Fair Credit Reporting Act

The federal Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.) gives you a number of important rights with respect to your credit file, including:

• The right to a free credit report from each nationwide credit reporting agency every twelve months
• The right to dispute information you believe is inaccurate or incomplete, at no cost
• The right to have inaccurate, incomplete, or unverifiable information corrected or removed
• The right to be told if information in your file has been used against you
• The right to place a fraud alert or security freeze on your file
• The right to sue a credit reporting agency that violates the law

Filing a Complaint

If you believe your rights under the Fair Credit Reporting Act have been violated, you can file a complaint with:

• The Consumer Financial Protection Bureau at consumerfinance.gov
• The Federal Trade Commission at ftc.gov
• Your state attorney general's office

Glossary of Common Credit Terms

Charge-off — A debt that a creditor has determined is unlikely to be collected. A charge-off remains on your credit report and continues to be owed even after it has been written off by the original creditor.

Collection account — A debt that has been turned over to a third-party collection agency. Collection accounts may appear on your credit report and may affect your credit score.

Credit utilization — The ratio of your current balances to your available credit. Lower utilization is generally treated as a positive signal by scoring models.

Furnisher — A creditor, lender, debt collector, or other entity that reports information about consumers to a credit reporting agency.

Hard inquiry — A request to view your credit file in connection with a credit application. Hard inquiries may affect your credit score.

Public record — A record from a court or government source that appears on your credit report. The main type currently reported is bankruptcy.

Soft inquiry — A request to view your credit file for reasons unrelated to a new credit application, such as a self-check or a pre-screened offer. Soft inquiries do not affect your credit score.

Tradeline — An entry on a credit report representing a single credit account, including the creditor, account type, balance, credit limit, and payment history.

VantageScore — A credit scoring model developed jointly by Equifax, Experian, and TransUnion. RefreshMonitoring shows VantageScore 3.0 educational scores.

The information in this FAQ is for general educational purposes and is not legal, financial, or tax advice. For advice specific to your situation, consult a licensed attorney, financial advisor, or other qualified professional. Statistics cited are sourced from the Federal Trade Commission. Results may vary, and no specific credit outcome is guaranteed.