Reading the Credit Report the Right Way

Whether you want a version of Equifax, TransUnion, or Experian, each of these bureaus are required to give you a copy of your credit report for free each year. This is provided for the Free Credit Report Act of the United States. The copy from each of the bureau comes for free every four months.

You can call 1-877-322-8228 and have your request processed. You can also go online and visit www.annualcreditreport.com and download your copy after going through the identity verification process. But, after you have received your copy, what is next? Reading through and understanding each detail are the tedious part.

Personal Data

Each credit report is identified by your personal information which can be seen from the information section. Although the data contained on this section may be familiar to you and the routine is boring, you should not let your guard down as fraud or identity theft can happen anytime to anyone. So go over the information and verify for consistency. Mistakes on how your name is spelled may be a minor. But if an employer is recorded by accident or mistake, by all means, file for a dispute.

Summary of Credit

The report’s Credit Summary is abbreviated and arranged to make it easy for you to understand all your financial affairs. You can find on this section information like your revolving accounts, total accounts, delinquencies, balances, and etc. Like the number of inquiries made, the data found on this section are time-sensitive and thus will be wiped out after a specific period.

Account History

Your credit report’s most thorough section is the Account History, where you can find data on your previous and present credit accounts. All credit types are recorded on this section: credit card from a retail store or the mortgage made on a house.

Each account recorded using your name is itemized and include information like account type, account number, balance, credit limit, responsibility, past due, payment status, remarks, and more.

This section is the most favourite part of creditors because it tells a lot about your attitude in making payments or in using your credit.

Public History

This section holds concise information about your past court judgments, bankruptcy declarations, or tax liens if any. Now, on this section, the information given varies from State to State, but even when concealed, it can nevertheless be available by request.

You have to understand that while the information is not comprehensive, it can influence your chances of getting approved for future credit or loan. The prescription period for keeping this information is from seven to 10 years. Therefore, it is wise to keep this section blank as much as you can.

Credit Inquiries

It is curious a fact that the credit reports provide information for two years about the volume of credit inquiries made about you. You will see find it common to see the names of your employers or businesses, creditors, and mortgage brokers. It will do you a favour to have this list short as possible.