Most people are more than just a little bit confused when they look at their first credit report. There is lots of information and numbers, which may leave you wondering how the heck you are supposed to read it. It's actually easier than you think and this article will give you a brief overview of what you should look for on your credit report. If you are suffering from a bad credit score, please complete our form for a free consultation with a
credit repair professional.
First you need to know that there are three major credit reporting agencies: Trans Union, Experian, and Equifax. You should have a copy of your credit report from each agency because many times they contain different information. The Fair Credit Reporting Act gives you the right to one free credit report every year.
A credit report is divided up into four sections: Your personal information, credit history, public records, and inquiries.
Your Personal Information
This is the information used to identify you- your name, address, previous addresses, social security number, date of birth, and sometimes your employment history. Be sure to look for any inaccurate information
Credit History
This section will contain all of your tradelines including credit cards, loans, mortgages, and utilities. Each tradeline will include the following information:
- The type of account
- When you opened the account
- The total amount of the outstanding loan or credit limit
- The current balance
- The minimum or fixed monthly payment
- The current status of the account
- The payment history of the account (never late, 30 days late, chargeoff)
Public Records
These are the more serious credit issues such as a bankruptcy, judgment, and tax liens. If this section is blank then that is a good thing.
Inquiries
This is a list of everyone who has requested to look at your credit report.
If you see any inaccuracies or out-of-date information on your credit report, you have the right to dispute the item by writing to the credit reporting agencies, or hire a professional to help you remove negative items.
