Believe it or not, many people do not know how to read or understand their own credit report. This is a huge issue as without being able to read and understand it, how are you supposed to know if there are any discrepancies in it? Here are some quick tips that will help you read and understand your credit report.
Credit Reports are generally divided into 4 different sections: identifying information, credit history, public records, and inquiries. They may vary in order depending on the credit bureau but understanding the different sections will make it that much easier to read and understand your credit report.
The Identifying information is used to identify you. This section will include the names, address, social security number, year of birth, telephone numbers, name of spouse of co-applicants, and former or current employers. You want to look at this information closely and ensure that all the information is accurate as this could be a red flag for possible identity theft or fraud.
The credit history will show you each of the negative and good standing accounts that are being reported under for you. Each account will include the name of the creditor and the account number. It will also include what kind of credit it is, for example; installment, mortgage loan, auto loan, revolving. It will also tell you the name or names on the account, total amount of credit or loan for that account, and how much you still owe. It will also tell you the status of the account, for example; open, paid, collections, charged off, 30 days late, etc. It will also show your recent payment history for the account.
Your report will also list only financial-related data such as bankruptcies, judgments, and tax liens as if you have ever had them as part of your public records. These accounts are also usually found on your accounts as part of your credit history.
Lastly, your inquiries, every time you have ran your credit, will also appear on your credit report. There are 2 types of inquiries, hard and soft inquiries. Hard inquiries are initiated by you when you fill out a credit application. For each hard inquiry, your credit score may suffer anywhere from 2-5 points. Hard inquiries can be seen by anyone who runs your credit. Soft inquiries come from companies that want to prescreen you for offer, potential employers, and credit monitoring. Soft inquiries only show on the reports sent directly to you, the consumer.
It is very important to know how to read and understand your credit report as it could be showing red flags through inaccurate personal information, accounts reporting that do not belong to you, and inquiries that you never authorized that you may be a victim of identity theft or fraud.
We can help you not only pull your report, we will also go over your full report with you and help you with any accounts that are hurting your credit.
We can definitely help each and EVERY situation, please give us a call at 844-FIX-URCR or http://bit.ly/csaelpappt to schedule your FREE consultation!
*Individual results may vary. Please call for more details and to discuss your own individual situation.