How to Read a Credit Report

Obtaining a credit report is a relatively easy thing to do. Reading it, and properly interpreting the information and how it pertains to your credit score, can be another thing entirely. Read on for more information on how to read your credit report.
Disclaimer

The content in this page is not a substitute for professional financial advice. Please contact your financial adviser before using the information presented here.

Reading Your Credit Report

This video discusses how to read your credit report, and details everything you can expect to find in any given credit report. It is important to check your credit report once a year. This allows you to make sure all your personal information is correct, and that everything in the report is accurate. You can request a copy of your credit report for free once a year.

Comments (0)

Write a comment...
Introduction
- Credit scores are more important than ever these days, and it is important to know how we measure up financially. Your credit report contains valuable information on your spending history. Any drop in credit scores can seriously affect your ability to secure a loan. It could also mean you'll pay higher interest rates on any credit cards you may have. Once you have obtained your credit report, you'll need to know how to read it.
Step 1: Obtain Your Credit Report
- By law, U.S. residents are entitled to a free copy of their credit report from the three consumer reporting agencies every 12 months. The agencies are:
1. Equifax
2. TransUnion
3. Experian
- You can obtain a free copy of your credit report online or by phone.
1. To obtain your free credit report online, go to AnnualCreditReport.com.
2. You can call 1-877-322-8228 to get a free credit report by phone.
- You are also entitled to a free credit report from all three credit reporting agencies if you've recently been turned down for a loan.
Step 2: Credit Report Sections
- A credit report includes your credit payment history, including any credit cards or loans you may have. The report is divided into four sections:
1. Identifying information, including your:
  1. Name
  2. Spouse's name
  3. Social Security number
  4. Current and previous addresses
  5. Date of birth
  6. Employer
2. Credit history, which may include:
  1. Names of all creditors/lenders and account numbers
  2. Balances
  3. Credit limits
  4. Payment history
  5. Account status
3. Public records, which include:
  1. Bankruptcies
  2. Monetary judgments
  3. Tax liens
4. The names of anyone who requested a copy of your credit report
Step 3: If You Find a Mistake
- If you think you have found incorrect information on your credit report, you should immediately report it. A form allowing you to dispute information should be included in your credit report. In addition, you should contact the credit reporting agency in writing immediately. The creditor has 30 days to investigate any disputed items.
Conclusion
- The information found in your credit report can have a profound effect on your financial status. Carefully reading your report can help you spot potential errors that could negatively affect your credit score and, in turn, keep you from getting a loan or a mortgage. If you think you've found an inaccuracy on your report, contact the credit reporting agency immediately.
How to Read a Credit Report Images Powered by Flickr and Google
view more images...