Do You Know How To Read a Credit Report?
written by Credit-HQ ExpertMany people like the fact that they can access their credit report, but once they get it in their hands, they find that it may be more difficult to understand than they first thought. It might be a hard thing to read, but once you understand what some of the things listed on your report mean, you will be able to read your credit report. Depending on where you get your credit report from will depend on how your should read it. All of the three major credit reporting agencies have a different system to present you with the same information. Since the reports are provided from a voluntary system, all the agencies will look different because they are able to choose what information they want to present to the consumer.
All credit reports will be divided into four different sections: personal information, credit history, inquires, and public records. You personal or identifying information is the information a creditor or the reporting agency uses to identify you and verify that you are the one that is accessing your credit report. It is the information such as you name, birth date, social security number, and address. All of this information should be double checked in order to make sure that there are no major mistakes that could cause confusion with accounts. If you have a name suffix such as Jr. or Sr, you will want to make sure your information is correct for you.
The credit history section includes all of the accounts that you have opened. The information provided is the name of the creditor, your account number, when you opened (and closed, if applicable) the account, the type of credit, how much to still owe, and the total amount of the loan. You will also be able to see if you have missed a payment, made a late payment, and all of the payments that you have paid on time.
Inquiries are of all of the companies that have accessed your report. Any time that you get a credit card offer or a loan offer in the mail, these companies have first accessed your credit report to see if you would be a good customer for them. Many companies will access your credit report each year, and you can see all the names listed on your credit report.
The last section is public records. This will include any information about your credit such as a bankruptcy, tax liens, and the use of a credit counselor. Lenders will take these things into consideration before offering you a loan.
Knowing how to read your credit report is an important part of monitoring your finances. You will want to have a good idea of what the lenders see so that you can make the decision of applying for a loan and know what kind of a chance you will have of receiving it before you even approach a lender. Use this information to help you with your financial status.
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