How To Read A Credit Report

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When you obtain an updated copy of your credit report, you’ll see what information creditors have reported about you. It’s important to understand the way to read a credit report in order that you’ll check for any inaccuracies which will be negatively impacting your credit score.

Table of Contents

What Is a Credit Report?

A credit report is quite sort of a report for your credit history. It is often employed by potential lenders to work out your “risk,” which is essentially just how likely you’re to pay your monthly payments on time. A credit report all about you’ll tell them:

  • The date you opened any credit accounts or took out any loans
  • the present balance on each account
  • Your payment history
  • The credit limits and total loan amounts
  • Any bankruptcies or tax liens
  • You’re identifying information (name, address, Social Security number)

Personal Information

This section of the credit report will contain information concerning the individual’s identity, such as, the person’s name, address, current and former accounts, date of birth, etc. a private should check the small print provided under this section, if there’s an incorrect address within the report or the person’s name has been misspelled, he/she should report this to the Credit Rating Agency (CRA) as this might be a symbol of wrong data being reflected within the report or credit fraud.

Public Records

This section of the Credit Report will list and bankruptcies filed by the individual, tax liens availed by the individual or collection accounts. The dates provided during this section should be checked as they’re going to directly affect how long they’re going to appear on an individual’s credit report and affect the person’s credit score.

Check any listed collection accounts against your records

Check the name of the gathering agency and therefore the amount of cash that you simply owe to make sure they’re correct.

  • If you owe any money, pay the balance off as soon as possible to enhance your credit score.
  • If you discover a collections account that doesn’t belong to you, submit a dispute letter to the agency that reported the knowledge.

Tips

  • If you think that there are errors in your credit report, working with a credit counselor or advisor are often helpful. They’ll be ready to re-evaluate your report with you and address any errors.

Warnings

  • Bankruptcy records will appear on your credit report for 10 years from once they were filed. All public records are going to be appeared for 7 years after the date filed.
How To Read A Credit Report

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