When you get a copy of your credit report, you are likely going to feel a little confused. Your credit report is not the most user-friendly document you will read. Here are some tips to help you understand your credit report and to provide additional financial help if needed.
One of the first things you will see on your credit report is the information identifying who you are. You need to inspect this to make sure that it is correct. Your Social Security number, name, address, driver’s license number, telephone number, spouse, and employers will all be listed.
After your identifying information you will find your credit history. This is the confusing part. The accounts on your credit history may be called trade lines. This is just a word used on the credit report to identify lines of credit or other debts that are reported.
The accounts will list the creditor’s name and the account number, the date you opened the account, the type of account it is, the names on the count, the limit on the count, what you owe, what the monthly payments are, and the account status. It will also state how good you have been at paying the account. This may be a plain statement, such as “never pays late,” or it may be a code, depending on which credit report you ordered.
After your credit history, you will find the public records section. If you have a good credit score this will be blank. If you have had bankruptcies, liens, or judgments against your finances, you will have marks on this page. These are very damaging and should be avoided.
Finally, you will see a page for the inquiries. Every time someone asks to see your credit report, it is listed here. Hard inquiries are the ones that occur when you apply for credit. Soft inquiries are the inquiries that creditors make before sending out advertisements.
That is all there is to understanding your credit report. Remember, you are entitled to receive one free credit report each year from each of the three credit reporting agencies. Asking for one is essential to knowing the status of your financial health.
Also be sure to visit the Financial Forums for other great financial advice.
