About Reading Your Credit Report

April 17, 2012 by  Filed under: Credit 

There comes a time in every person’s adult life where you will need to know your credit score. Do you know yours? It is often something that we like to ignore because we are too worried about what the outcome can be. I mean think about it. Three different credit bureaus can decide your financial fate based on how they deem you have taken care of your credit so far. It also can be scary that they also never agree. One bureau will report you higher and one will probably report you lower and it is hard to really know where you stand. This article will take a look at credit reports and try to help you understand them a little bit more. Maybe by knowing a little bit more about what your report will actually tell you, you will not be scared to check yours.

Before we go into talking about the different aspects of your report, it is important to keep in mind that there are a lot of scams out there to get you to look at your credit report. Make sure you are requesting and giving your information to reliable sources. You are entitled to one free credit score every year from each bureau and there is a multitude of ways that you can go about achieving it.

One of the first sections in your credit score is your regarding your personal information. This information should include your name, address, social security number, date of birth, and any other information that might be imperative to you. It is important to make sure that all of this information is correct and that the bureaus are correctly identifying you.

Another key component on the report is about your credit history. This is usually the part that people are the most afraid of. This will go back as far as seven years. It will show any reoccurring debts that you may have and that you make payments on. There will be a status of current or it will show any times that you have been late on a payment. Obviously, a good report will not have any late payments listed within the last seven years. If you have had anything turned over to collection agencies, this will also be shown.

There is also a public records section. This section will release any records that are made about you in a legal matter. They are only allowed to release information about financial issues. This would mean bankruptcies, liens, or any other legal financial judgment

The final section will show any inquires that have been made about your credit. A general rule of thumb is that you do not want a lot of inquires. The reason for this is because inquires usually mean that you were looking to get a line of credit and too many lines of credit can hurt you.

If you have any other questions regarding your credit report it is important to ask questions and stay informed. You can get your credit report for free and then go over every detail to make sure that there are not any discrepancies.

Robin Wood
Free Credit Report

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