Remember Me
forgot your password?

Credit Reports And What To Do With Them

There are three major credit reporting agencies within the United States: Equifax, TransUnion and Experian. These are the organizations that lenders go through to verify potential borrowers credit worthiness.

Federal Law indicates that individuals are able to receive one copy of their credit report from each of the three agencies annually, and at no charge. It's a good idea to look it over once a year to make sure there are no errors or omissions.

How do you read a credit report? There are abbreviations and numbers and codes, and for people who are looking at them for the first time, they can be a little confusing.

Obtaining Credit Reports

In order to get your free credit reports each year, you can go to www.annualcreditreport.com, which is the only authorized source for free annual credit reports under the September 1, 2005 federal law. If you go directly to the credit reporting agencies, there will be a charge to view your report- unless you qualify for another criteria to view a free report (being denied credit, for example).

If you want to monitor your credit report more often than annually, you can sign up for reports at any of the three credit reporting agencies, and pay about $10 per report. You will want to view the report at all three agencies, unfortunately, because the information is not exactly the same and you need to check for errors at all locations.

Reading Credit Reports

Credit reports are divided into four different segments: identifying information about the individual, credit history, public records, and inquiries made to the credit file.

Identifying information should include your name and address, and social security number. If you see a few variations of your name or more than one social security number, it's because one of your creditors has reported it incorrect, but that information should remain because taking it off can hurt the connection between the report and the creditors who use it.

Identifying information also includes your employer(s), driver's license numbers and sometimes your spouse's name.

Credit history includes a list of individual accounts and account numbers (which may be encrypted). Information for each account will usually show the date it was opened, the type of credit (mortgage, car loan, installment, revolving), total amount of your loan and the amount you still owe, as well as the status of the account (open, closed, paid as agreed, inactive) and how you've been making payments on the account (on time, 30 days late, 90 days late, etc).

Public records is a section that you hope has nothing in it. This section provides details for bankruptcies, tax liens and judgments. This section will lower your credit score faster than anything else can.

Inquiries provide a list of "hard" inquiries- credit you've applied for and can affect your credit score- although FICO ignores most inquiries when coming up with their scores for individuals, and "soft" inquiries from credit card lenders who check your file before sending out promotional credit card offers. Soft inquiries do not raise or lower your credit score.

What to Do with Mistakes on Your Credit Report

If you find mistakes on your credit report- such as incorrectly reported amounts on an account, or an account that doesn't belong to you, you can fill out the dispute form included on a mailed copy of a credit report, or use an online form to dispute the discrepancy online.

The credit reporting agency must then verify the information within 30 days of your filing the dispute (or the mistake must be removed). If they find it to be correct, and you still disagree- you can contact the creditor directly to have it corrected. If they find the information you've disputed to be incorrect, they are required to remove the item from your credit report.

Debbie Dragon
This article has been provided courtesy of DestroyDebt.com, your source for debt help online.
Rate this Article: 0 / 5 stars - 0 vote(s)
Print Email Re-Publish

Add new Comment



Captcha

  • Latest Finance Articles
  • More from Debbie Dragon

Protect Yourself From Identity Theft and Its Consequences

By: Tony Francis | 15/11/2009
Identity theft is the act of stealing an individual's personal information. Personal information is considered a valuable commodity in the black market as they can be used to open bank accounts, get credit cars, seek loans, and claim state benefits or state documents like driving licenses or passports. This article...

Equifax and Its Credit Identity Theft Protection Services

By: Tony Francis | 15/11/2009
Monitoring your very own accounts can be tedious for most busy individuals, aside, of course, from the fact that your access to your records is very limited. This is why, sometimes, conducting an identity theft check on your own is not enough, as some may not be brought into your...

How improving your home can improve your life!

By: Geoff Charles | 14/11/2009
Anything that makes a home more comfortable, energy efficient and attractive will add value, and not only by increasing market value. Some improvements also save money in the long term by reducing fuel and maintenance costs. And what value would you place on a home that is perfectly adapted to fit your needs? Here are some of the most popular improvements that are proven to improve quality of life and increase property value.

Apply for Government Grants-A Solution to Avoid Dire Financial Problems and Bankruptcy

By: PATRICIA BARDOWELL | 14/11/2009
Life is always so unpredictable. It poses many problems for individuals when they least expect it, such as accidents, and sickness etc. Although individuals exercise financial discipline, a major illness, death of a loved one, or a job loss, can derail a family's financial stability, and place them on the brink of financial disaster. Government grants are available, to help those in need.

How to Use Debit Cards

By: Sherry Tingley | 14/11/2009
Debit cards have made life much easier for a lot of people. Manage your debit card spending and you will enjoy using them. If you fail to manage your spending, you'll probably not want to use one.

How to Apply for An Instant Approval Credit Card

By: Liz Roberts | 14/11/2009
If you have bad credit but you need a credit card right away, then you must look for a guaranteed approval credit card. Here's a tip on how to apply for a guaranteed approval credit card.

Finding "The One" is as Easy as Talking to Your Mechanic

By: Patricia Gabbett | 14/11/2009
You have spent hours in front of your computers' monitor in search for the perfect car insurance company who will fit you like the wedding ring on your finger. You were a bit confused to see that there are hundreds of car insurance companies in the market, not to mention...

Factors That Affect Your Car Insurance

By: Patricia Gabbett | 14/11/2009
It can get pretty confusing when trying to figure out the ins and outs of low cost car insurance. There are a lot of factors to consider when purchasing insurance for you and your automobile. Car insurance is there to help cover the cost in case of an automotive accident....

Make Your Own Debt Reduction Plan

By: Debbie Dragon | 03/01/2009 | Finance
As an increasing number of people are finding themselves in over their heads in debt, many are turning to various debt management programs for assistance. Before you sign on to one of these programs, you might try to make your own debt reduction plan - and save yourself having to...

What is Debt Settlement and is it Right For You?

By: Debbie Dragon | 12/12/2008 | Finance
If you're seeking an alternative to bankruptcy due to excessive debt that you can't pay, you may be considering debt settlement. Settling your debt is when you negotiate with your creditors to lower the amount you owe. While there are a number of debt settlement companies that exist to help...

Could You Use More Than One Savings Account?

By: Debbie Dragon | 03/12/2008 | Finance
Originally, savings accounts were created to give people a place to hang on to their money for the future, and to earn a little interest in exchange for doing it. It was a safer place to hold the money than under the mattress or in a box buried in the...

How to Compare Savings Accounts

By: Debbie Dragon | 30/11/2008 | Finance
Savings accounts are where many people hang on to cash for future use - some people save for emergencies, vacations and travel, and the items they would like to buy someday when they have saved up enough money. People feel confident with their money in savings accounts, because they are...

How to Save Money Christmas Shopping

By: Debbie Dragon | 24/11/2008 | Finance
It's that time of year again - for those of us who are financially disciplined, you've either already completed your 2008 holiday shopping or you've got the money set aside and ready to go. For the rest of us, we've only just barely thought about Christmas shopping - and believe...

Free College Education Exists

By: Debbie Dragon | 10/10/2008 | Education
As high school seniors begin making plans to go to college, the financial reality of it all begins to set in for their parents. Sure, it's usually pretty easy for students and their parents to get approved for college loans to pay for whatever you can't pay upfront - but...

Using a Credit Card For All Purchases Without Going Into Debt

By: Debbie Dragon | 22/09/2008 | Finance
Using a credit card instead of writing checks for everything you have to pay for during the month is tempting. If you could use a credit card, and knew that you wouldn't wind up in debt up to your ears, wouldn't you like to? Think of what it would mean...

Taking Responsibility For Your Credit Cards

By: Debbie Dragon | 20/08/2008 | Finance
In numerous cases, credit card companies issue cards to customers who may be deemed, risky. In many cases they do so at a higher interest rate. Some of these cards still have annual fee's and additional charges. Now, granted, customers should avoid these cards. However, some customers who want a...

Submit Your Articles Free: Signup
Article Categories




Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2008 Free Articles by ArticlesBase.com, All rights reserved. (0.13, 1, w1)