A Guide To Understanding Your Credit Report More

Copyright (c) 2010 Suzy Vanstrusen

So you have been advised that the first step to solving your debt problems is to get a copy of your report and examine the status of your debts. After requesting a copy of your report from a legitimate credit bureau, you're still left in a state of confusion. You really don't know what to make out of the numbers and details in your credit report. There are a couple of terms in your report that you don't understand? So what do you do?

Consumers who are checking their credit report for the first time will most likely find all these details very confusing. In this article, we'll talk about the basic elements of a credit report and what each of these details reveal about you.

Personal Information

This is the first part of your credit report that includes all personal information about you- your name, address, phone number, Social Security number, driver's license number, spouse, employer, and other applicable data. Most consumers just skim through this part of their credit report. But although this particular section contains only basic identification that you already know, you still want to make sure that all of them are correct. Take note that misspellings, missing digits, and wrong details are common errors found in a credit report. So take your time and read each detail carefully.

Credit History

This is the most important part of your credit report. Here is where all your activities that concern credit are recorded. The different types of credit you have, your record of payments, your credit line, debts, past due bills, transfers, charge offs, etc. This section includes the first and oldest account you opened, the accounts that you've closed, and inactive accounts in your name.

Are you a good borrower? Do you pay your debts on time or are you often late in submitting your payments? Do you maximize the use of your credit line? For people who have been a victim of fraud or identity theft, checking this section is recommended and try to see any signs of unauthorized charges made using your name. Yes, all information listed here directly affects your credit score. In fact, your credit-worthiness will largely be based on the details of your credit history.

Public records

If your debt problems are really serious, chances are this section would contain some notes. Tax liens, judgments, foreclosures, bankruptcies- any of these will be place under the public records section of your credit report. Thus, you'll want to keep this particular section of your report clean and free from any remarks.

Inquiries

Lastly, your credit report will have a section reserved for inquiries made by lenders or insurers whom you've applied credit with. This section will be filled with inquiries if you are the type of person who often send credit card applications to various banks just to get the freebies offered. A record of too many inquiries puts you in a bad light. Lenders would immediately get the impression that you're submitting applications all at once in the hope to get approved by even one creditor.