Instructions on how to Read a Credit Report

Building up a good credit score is vital to be approved for loans, buying a car or buying a house. There are various websites and organizations where you can get your credit report and look it over. Many people, however, do not know how to accurately read a credit report. Credit reports contain several sections, and these sections include abbreviations that sometimes cause confusion. Once you know what is covered in each section and what each abbreviation stands for, reading a credit report is very easy.

Instructions

1

Look over the ID section to make sure there are no errors. This section will have your name, current address, Social Security Number, date of birth and your spouse's name if you are married.

2

Read through the credit history section. The section will start off with the company that is reporting the information, your account number with this company, and whose account it is. The abbreviations for this are: I-individual, U-undesignated, J-joint, A-authorized user, M-maker, T-terminated, C-co-maker/co-shared and S- shared. The section will list the date you opened your account with the credit grantor, the number of months reported, recent activity on the account, the highest amount charged or the credit limit, any balance due, any amounts past due and whether the account is: O-open, R-revolving, I-installment,

3

Scan over the collection accounts section to see if you have had any accounts referred to collection agencies in the last seven years. Check to make sure there are no collections listed that you do not remember or seem out of place. Read through the courthouse records section to make sure all records and information is listed correctly.

4

Read through the inquiry section to see the list of businesses that have been given a copy of your credit report in the last two years.