How Do I Read My Credit Report?

Your credit report can help you in so many ways. Whether you are looking for your balance history or you want to check the inquiries of your credit, you can easily get all of your credit information from your credit report. A credit report is basically a statement which includes every information about your credit like your personal information, address, balance, transfers, purchases, credit score and inquires. This information is used in various places in different forms. Instead of asking such information from your credit card company or looking ways to find it, you can easily use your credit report. Well, most of the people don’t take care of their credit reports and just consider their credit cards and personal balance. Although it is not a very sensitive thing if you don’t owe your credit report, you will never have a clear idea about your credit information. As every person wants to know his balance details, credit reports have been introduced to assist people with it. That’s the reason why professional people and businesspeople keep their credit reports with themselves.

A credit report is a bit different from other traditional reports. There is all the credit-related information which is not understandable by every person. So, if you want to get proper information from your report, you must know how to read it. Today, we will show you how you can properly read your credit report to get the best of it. Before telling you the reading process, keep in mind that a credit report has different sections. These sections are divided into categories and each category has some specific information. After getting the report and having a look at it, you will see different parts. Here are the credit reports’ parts with their details.

1) Personal information

Mostly, in every credit report, the first section is personal information. This section tells you all about you and your data. This is all that information which is being used by the credit card company. This information is usually collected from the financial institutions. After the collection, it is submitted in a report. In the end, you get your credit report with the personal information. Personal information section includes these items.

  • Name
  • Date of birth
  • Current address
  • File creation date
  • Your previous addresses
  • Most recent Files pulled date
  • Telephone number
  • Spouse’s name
  • Driver license number
  • Employee’s name
  • Marital status
  • Employment history

It is not essential that you find all of the above information in your credit report. Every credit report is generated by adding just necessary and essential information. So, if you don’t find some of the mentioned data, don’t worry about it. However, if you find that some information is wrong or irrelevant, then contact the company.

 

2) Account history

Another section of the credit report is account history. This section includes everything about your account. It mentions how you have been handling the credit in the past, also shows the credit and the accounts opened or closed. It contains every type of information that is associated with your credit account. Whether you talk about your loans type and number of loans or you consider the limits of your account, you can find everything in it. Here is the complete information in account history.

  • Status of the account i.e. inactive closed or paid
  • Loan types you have taken
  • Amount of loans
  • Credit limit
  • Credit numbers
  • Account numbers
  • Original balances
  • Account opening date
  • Accounts joining dates
  • Account collection
  • Account dispute
  • Mobile phone accounts/utility bills
  • Monthly installments
  • Mortgage

In account history too, you cannot always find everything which you have read above. However, you will see most of them in the credit report.

 

3) Credit score

The most important and valuable information on the credit report is your credit score. It all tells you and the company how good or bad you are in credit. If you want to take a car or home loan, the company will decide after checking this credit score section. It includes the information of how stable you are in managing and handling credit. It also tells you whether you are a risky person or you are a reliable person. Suppose you want to get a car loan from a company. If your credit score is high, you can easily get lower interest loans and mortgage. Oppositely, if the credit score is not good, then it is usually challenging to get low-interest loans. Credit score includes the stuff mentioned below.

  • Credit history
  • Current credit score
  • Loans and mortgages

 

4) Public records

The public record is a section in a credit report that tells all about your legal issues with the credit. It also describes how much interest rates you are or you have been getting from lenders. This section includes issues from almost 5 to 10 years. Most of the people ignore this section as they don’t understand it. However, it can create a bad impact on your credit score. Here are the things you will find on a credit report.

  • Tax Liens
  • Bankruptcies
  • Judgments
  • Foreclosures

The more issues you have in your credit reports, the worse your credit score is. Companies, banks, and organizations will give you loans and mortgages on the base of this section.

 

5) Inquiries

Another section of a credit report is inquiries. It includes the inquiries that you made regarding your credit card or credit score. It doesn’t matter whether you have a lot of issues in your credit score or your report is clear, you will find inquiries in this section if you have made some.

 

Conclusion:

So, these are all the sections you will find in your credit report. Now you can easily read and understand your credit report. Simply keep in mind that these sections are mostly found in every credit report. Now you can read your report regardless of your experience in it. Always try to improve your credit score and don’t commit mistakes. Otherwise, your credit score will be bad and it will affect your entire credit score.

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