Discover the Parts of a Credit Report and What They Mean

So you ordered a copy of your credit report to check for inaccuracies and get the most from your credit score. Now how do you read it? Your credit report is read and used by any number of people you deal with on a daily basis, from your landlord to your employer to a potential lender. Fortunately, it has gotten easier to order a copy of your report, but it's not so easy to understand what all those abbreviations and numbers mean once you've got it.

If you haven't ordered your credit report yet, you will soon be entitled to a free copy from each of the three major credit bureaus, Equifax, Experian, and TransUnion. Some states can already take advantage of this new policy, but people living in eastern states will have to wait until September of 2005. Order your free yearly copies from all three agencies and check for the availability of the annual reporting program in your area at the same website: www.annualcreditreport.com. Each report will contain different information because retailers and creditors only report to the agency in their area or with whom they have an agreement.

Once you have your credit report in your hands, you will see that it is divided into four main sections:

? Consumer information
? Account histories
? Public records
? Inquiries

Double check the accuracy of your identifying information. This will include your name, address, phone number, previous addresses, date of birth, and Social Security number (SSN).

Next, for each account history, or trade line, you will see the following information:

? Date you opened the account
? Type of credit account (either installment, such as a car loan or mortgage, or revolving, such as a credit card)
? Name(s) on the account
? Total loan amount, credit limit, or highest card balance
? Amount you currently owe
? Amount of your monthly payment
? Account status (either open, closed, inactive, paid, or other)
? How promptly you have paid on the account

Credit agencies vary as to how they word various sections of the report and should provide you with a guide to reading their versions. One agency might report in the last column of an account history that you paid "on time" or "30 days late." Another agency might use a numeric code to rate how well you paid off a debt. R1 is the code used for an excellent repayment history on a revolving charge account. I1 is the code used for an excellent repayment history on an installment account. Obviously, the higher the number next to either the R or I, the lower your repayment history is rated. So an R4 would indicate a history of late payments.

The public records section will include any tax liens, bankruptcies, judgments, or other financial-related legal matters. Depending on the type of action taken, these damaging records may stay on your credit report for up to 7 to 10 years.

The last section lists the inquiries made on your credit. Hard inquiries are those requests to pull your credit when you apply for such things as loans or lines of credit for services. Soft inquiries result when companies sending out promotional items to pre-qualified individuals check your history or when your current creditors check your payment status. The soft inquiries only show up on the report that you order, not on reports pulled by lenders.

While too many inquiries in a short period of time can signal a red flag to a lender, most credit scoring models are least affected by this portion of your report.

Check your report for any errors and report them immediately in writing. If you have experienced damage to your credit, go to http://www.creditdamage.com to find out what you options are.

Don't forget that the credit agency providing your report is also a great source of information on not only reading your credit report, but raising your credit score.

Cathy Taylor is a marketing consultant with over 25 years experience. She specializes in internet marketing, strategy and plan development, as well as management of communications and public relations programs for small business sectors. She can be reached at Creative Communications: creative-com@cox.net or by visiting http://www.menopauseinfo.org or http://www.internet-marketing-small-business .com

---

How to Evaluate and Raise Your Credit Score

Why do some people get offers for pre-approved credit cards... Read More

Top 5 Reasons To Check Your Credit Report Regularly

#1 Make sure mistakes aren't hurting your credit.Reviewing your credit... Read More

Trying to Land a Job? Poor Credit Scores May Hurt Your Chances

Many employers are now looking at an applicant's credit report... Read More

Commercial Collections: Business Finance Booster Shot

Commercial collections: fixture of the new B2B cultureIf you're in... Read More

SuperCharged Secret 3, Credit Card Utopia

TURBO-CHARGED KILLER RATE SAVING INFORMATION!Let's just take a brief moment... Read More

Credit Trap: What They Dont Tell You About Credit Cards In College

In industrialized nations, going into debt starts early. It's easy... Read More

Always Avoid Payment Holidays

Once you've been paying off a credit card for a... Read More

When You Are Eligible For A Free Credit Report

By Federal law, you are entitled to one free credit... Read More

Fixing A Credit Report

Fixing a credit report starts with seeing what's on it.... Read More

What Can Happen to You as a Victim of Identity Theft, Facts & Figure

Is identity theft really that serious? Thousands of people every... Read More

Credit Card Traps: How To Spot Them On The Spot!

They arrive in your mail - a conspicuous looking mail... Read More

Credit Help for Real Estate Financing: Credit Scores

When you buy real estate, lenders run all of the... Read More

Four Tips How Homeowners Can Rebuild Their Life After a Foreclosure

Let's face it, if you are facing the possibilities of... Read More

Common Credit Score Myths

A lot of credit score myths about fico score ratings... Read More

Maximizing Credit Card Rewards

In their quest to get you to sign up for... Read More

Credit Reporting: How Does It Work?

In order to determine a consumer's credit worthiness, creditors and... Read More

0% Credit Cards

These days, credit cards in the UK are competing with... Read More

Credit Cards -- What You Should Know

There are a lot of questions about using credit cards.... Read More

Credit Card Disclosure Table ? Do You Understand It All?

In addition to the APR (annual percentage rate) and the... Read More

Avoiding College Credit Card Traps

Congratulations college freshman! You're about to embark on one of... Read More

Compare Credit Card Offers and Reward Yourself

Here's a simple system on how to pay zero interest... Read More

Your Credit Card May Be Costing More Than You Think!

Do you know what your credit card is truly costing... Read More

What You Need to Know about Debt Negotiation on Credit Cards

Debt negotiation on credit cards is often referred to as... Read More

What is Credit Repair and How Can It Help You?

There are millions of consumer credit reports on file from... Read More

Why Does FACTA Matter to Me?

FACTA stands for Fair and Accurate Credit Transaction Act. FACTA... Read More

Credit Repair: How To Deal With Your Creditors

If you are in danger of credit problems because you... Read More

All About Balance Transfers

What is a balance transfer?A balance transfer can be explained... Read More

Making Sense of Credit Card Fees

In addition to the APR (annual percentage rate) and the... Read More

The Truth About Credit

What you might not know about credit.Some people don't know... Read More

Credit Card Shocker

Have you ever looked at your credit card statement? I'm... Read More

How To Use Your Credit Cards Wisely

Are you one of the thousands pulling your hair out... Read More

Online Credit Report and Online Credit Reports

Online credit reports are easily accessible to those interested in... Read More

Your Consumer Rights

If you have ever fallen behind on your debts you... Read More