How to Read Your Credit Report

How to read your credit report

Learning how to read your credit report could help you navigate through loan processes and credit checks. There are three reporting agencies from which you can get a report – Equifax, Experian, and TransUnion. You’re allowed to get one free credit report each year from each of the reporting agencies (from www.annualcreditreport.com). That means you could pull each single bureau credit report three of four quarters of the year but once you get the report, do you know what it all means?

Anatomy of Your Credit Report

On the surface it can look complicated but it doesn’t have to be. A standard credit report will include:

  • Personal information about you including your name, current and previous addresses and Social Security number.
  • List of credit accounts including student loans, mortgages, and credit cards which will include your positive and negative payment history, balances and credit limits.
  • List of collection accounts (creditor debts that were sold to third party collection agencies)
  • Information that is of the public record including bankruptcies, judgments, or tax liens.
  • Inquiries about your credit from the past two years.

It is a picture of your credit history. The reporting agencies then use this information to determine your credit score. Your scores will be calculated based on that “snapshot” of exactly the information which is showing on your reports at that moment. Basically, your credit score tells a creditor how likely, based on your credit history, you are to pay back debt.

You can obtain a FREE credit report using www.annualcreditreport.com  and monitor monthly activity and see one score at the FREE website www.creditkarma.com.

If you’ve pulled your credit report and are wondering…

  • How long will this debt stay on my credit?
  • What do I do if I owe debt with another person?
  • How can I get this negative item resolved?
  • How can I improve my score quickly?

It’s time to call Go Clean Credit. We can help you understand what’s on your credit report, make recommendations for actions you can take, and walk you through the process of cleaning your credit so you can have peace of mind the next time you go to purchase a home, car, or get a loan. It can take a lot less time than you think to have clean credit and better scores…

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