How do credit reports work?

Question

Okay, I know about annualcreditreports.com and all, but I'm having a little trouble here. I tried using both TransUnion and Experian today for my free report, but so far neither of them are giving up the goods. I'm just concerned because Experian said I may have taken out a loan in 2007--something I can most emphatically deny. Yet when I ask them for my report, they say that they can't display it. Is this from a lack of a credit card/(known) loans/etc? I certainly don't have a big record, but I want to see if anyone's been parading around in my name. So, should the potential loan thing bother me?

Answer 1

They ask questions for security purposes to make sure you are really you.  They often ask about a mortgage or address that aren't yours.  The correct answer is no or none of the above.  

Folks often mistake this as being some kind of ID theft and fail to actually answer the question.  If you don't properly answer the questions, you won't get access to your credit file.

Answer 2

They go by points. Higher the points the better your worthiness.