How to Read a Credit Report?
So you have ordered your credit report and now you need to review it. A credit report is made of several sections including your personal information, public record, hard inquires, and accounts. Depending on where you obtain your credit report, your soft inquires, creditor information, and your phones numbers may be listed as well.
The personal information section will list your full name and aka names, previous addresses, current employer, and previous employer. Make sure your review this section for accuracy. Even though your personal information does not affect your credit score, it is important to still review it.
The next section listed on your credit report may be your public record. The public record section will list any bankruptcy filings, judgements, over-due child support, and tax liens. This section of your credit report does affect your credit score. Make sure to review this section for accuracy. Check to make sure the information is correct, up-to-date, and verifiable.
Hard inquires will also be listed on your credit report and count as 10% of your FICO credit score. This section lists inquires that were made from companies that you authorize to review your credit report. Make sure to review this section to inaccuracies and unauthorized inquires. If you have many unauthorized inquires, it may be an indication that you may have been a victim of identity thief.
The last section that is listed will be the accounts section. Please remember that many credit reports will indicate which account are positive account and which accounts or negative/adverse accounts. Make sure to being with first listed account and review everyone on the credit report from the date the account was opened to the amount owed.
In order to review your credit report, you have to understand how to read it. Each credit reporting agency is different so be sure to review each credit report separately. It is not uncommon for some accounts to be listed on one credit report and not the other.
Remember that it is your job to highlight and challenge the inaccurate, erroneous, outdated, and obsolete information on your credit report. Every person has the right to dispute inaccurate, erroneous, and outdated information. To order your FICO credit report and get started reviewing it click here.
If you are not seeing any results from your credit restoration efforts click here to schedule a free consultation with one of our nationally certified credit counselors.