How to Decode Equifax

According to the Federal Deposit Insurance Corporation (FDIC), Equifax is one of the three major providers of consumer and business credit reports in the United States. User-friendly online interfaces make ordering your credit report a snap. However, ordering your credit report is simpler than reading the report itself. Equifax uses a system to record and report your credit history, and understanding what each code means can be tricky. However, learning how to read your credit report will help you understand your current financial situation and what steps you need to take to improve it.

Instructions

1

Order your free annual credit report from Equifax or AnnualCreditReport.com, the central site set up as a service for consumers (see the Resources section).

2

Review your personal information on the report, once you receive it. This is the first section of your report and reflects the most basic information about you, such as your name, any names that may have been associated to you in the past, your current address and the past three addresses on file for you, your current and two previous employers as well as your current position. The presentation of this information is straightforward.

3

Review the Public Records section. This is the section of the report that reflects any judgments, liens or bankruptcies that have been recorded. The information is presented in chronological order and will reflect the date that the record was filed, the date it was resolved, the court in which it was heard and the outcome of the case. It's best for your credit rating if this section is blank, explains to Bankrate.com.

4

Review the Tradelines section. This is the section that most people relate to their credit report and, potentially, the most complex to decode. This section lists all of your current and past credit accounts. Each account will list such items as the names of your creditors, your current balance, your highest balance, when the account was opened and whether or not you are paying your account on time. Delinquent accounts are in categories according to the amount past due, such as 30, 60, 90 or 120 days. Other classifications include "charge-off," "repossession" or "transferred."

5

Review the Inquires section. This section will let you know who has requested a copy of your credit report. There are two types of credit inquires: those in conjunction with an offer or promotion that are initiated without your direct consent and those requested by a lender or other service provider as part of an application process that you initiated. According to Bankrate.com, most inquiries are ignored, unless there are many initiated by you over a long period of time.