How to Read Individual Credit Reports

There's no escaping your credit report. This document is used to determine everything, from whether you can rent an apartment to whether you should be trusted with a particular job. While your credit score moves up and down as your financial situation changes, your credit report acts as a snapshot of your life and how you manage your finances. Although it can be pages long, all credit reports essentially include the same information, making them easy to read.

Instructions

1

Check to ensure that the identification portion of the report is correct. This section will list your name, Social Security number, date of birth, current address and spouse's name if you're married. Credit mistakes are often due to someone else's information being included on your report, particularly if your names are the same. If you see anything that is unfamiliar, dispute it with the credit bureau.

2

Go through each piece of credit information, looking for discrepancies. The credit history section is the heart of your credit report, the reason you are assigned a particular credit score. Go over each account listed to ensure that their information is correct. First, you'll see the name of the company you have done business with, then the account number, a code for who is responsible for the account, the date the account was opened, how many months the account holder has reported it to the credit bureau, the last time you used the account, the highest amount of debt your ever owed, repayment terms, the balance owed, any amounts past due, the status of the account, and the last time the information was updated by the creditor. This is the portion of the credit report that demands discipline on your part. It's easy to simply skim over it, but checking each of the 11 points reported for accuracy can make a difference in your credit score. For example, you may have an account that has been closed for years but still shows as being open, or a debt that is paid in full, but shows as owing.

3

Verify each item in the collection accounts section. This portion of the credit report says whether you've had accounts referred to collection agencies in the past seven years. It will include the name of the agency and the amount owed. In some cases, your report will also list the collection agency's contact information. If you see anything that is incorrect, file a dispute with the credit bureau. It has 30 days to verify. If it is unable to verify it, it must remove it from your report.

4

Closely examine the courthouse records or public records section. This is where record is kept of any tax liens, bankruptcies, collection account, overdue child support and judgments against you. Because the credit bureaus collect this information from so many different sources, it is especially important to make sure that it doesn't have you confused with someone with a similar name or Social Security number.

5

Scan the additional information section. Here you'll find a list of your previous address and past employers. While this information may not seem as critical as some on your report, a mistake indicates that someone else's information has been included on your report and should be rectified.

6

Check to see who's been asking about you in the inquiry section. This portion of the report will provide you with a list of businesses that have accessed your report in the past 24 months. If any of those inquires are unfamiliar to you, do some investigation. You want to know who they are and why they're looking into your credit. No one should be checking your credit report without your knowledge. The credit bureau might be able to help you find the proper contact information.