How To Check Your Credit Report
Obtaining a copy of your credit report is important, but you will have to know how to read it before it can benefit you. Here are four things to help you decipher the information:
1. Reasons for Score
You will have three scores, one each from the three major credit bureaus: Experian, TransUnion, and Equifax. Each score will be accompanied by a list of reasons that justify your score. You must analyze these reasons because in order to improve your score, you will want to address these specific concerns.
2. Public Records
This section concerns collections, judgments, liens and bankruptcies, all factors that contribute to lower scores. You will want to double-check dates that judgments or bankruptcies were filed or discharged. You can also discern who currently owns collection debt against you and find out how much you owe.
3. Trade Lines
After public records, you will come to a section where all of your open, active and closed accounts are listed. Under each account name you will find your account number. Across from the account name, you can also see your balance, credit limit, monthly payment, and a count of late payments on each account.
4. Inquiries
In this section, you will find a list of everybody who has requested a copy of your credit report. Essentially, every time you apply for credit, the creditor will obtain your credit report, and a log of these inquiries is maintained. Remember, too many inquiries can be viewed as a negative reflected in your credit rating.
These four tips should help you understand the major sections of your credit report. Understanding each section, will help you create a solid credit profile. Keep in mind, you will want to verify everything included in each section.
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