Reading your Credit Report

A lot of people request their credit reports each year in order to get their credit scores and to repair errors. However, many of them have trouble determining how to interpret the report. Being able to read your credit report is very important in fixing your credit and understanding your financial picture.

There are three main credit reporting agencies that provide credit scores to financial institutions, employers and landlords. You should request your credit report from each of these agencies: Experian, TransUnion and Equifax. There are four different main sections that all reports include. There is identifying information, credit history, public records and inquiries.

Identifying information will include your social security number, full name, and previous names and your driver’s license number. It will also include your address and your previous addresses, telephone numbers and employer history. Errors in these sections are very easy to correct.

Credit history is the next section. It will include different credit accounts that you have held in the past, their balances and payment history. There are also verified account numbers on each account. Each credit account will include information on the status of the account (Open or Closed), the total balance due and payment history. If you have been late on any account payments, it will show up on your credit report.

The public record sections will list any criminal records you have received. This will include arrests and judgments made against you for non-payments. Finally, the credit inquiries section lists how many times your report has been viewed, and who looked at it. This portion is important because too many inquiries within one time period will reflect negatively on your credit score.

Although there are minor variations depending on the credit agency, all of your credit reports have the same basic format. Taking time to discover what each of your credit reports list is important in taking control of your finances.