How To Read A Credit Report
Since the format of a credit report varies depending on the source, it would be impossible for me to give you detailed instructions on how to read your report. I will give you some general information that will hopefully allow you to figure out your particular report a little easier. As a rule, all the reports have the same information, it just may be in different places.
When you first look at the report, you should see your personal information. Make sure that it is all correct down to the spelling and middle initial. You should also see a current address, date of birth and social security number. Once again, review all this IDENTIFYING information. This how you know this report is about YOU!
Next you should see your "tradelines" or a list of your creditors. Sometimes they will be in alphabetical order and sometimes they will be in order from the highest to the lowest monthly payment. Usually ones with a balance will be listed first with closed accounts following.
You will see the name of the creditor and an account number. Make sure these are correct. Sometimes you will see the creditor listed twice with slightly different account numbers if you are looking at a "tri-merge" account like a mortgage officer would get. If the high credit and balance is the same, it is probably a reporting issue with one of the credit bureaus. You can ask that it be corrected, but in the mean time if someone is looking at your credit for a loan, point out the error so they do not assume you have to pay it two times.
The next columns to the right usually include date reported, date opened and date of last activity. Make sure these are correct, especially if you have been making payments and the date reported is not recent. These are important if you have derogitory information, as the longer ago it was, the less it effects your score.
To the right of that you should see high credit, type of account, current balance, and terms. High credit is your limit expressed in dollars (10,000). Type is usually mortgage (mtg), Installment (inst) such as a loan with a preset number of payments, Revolving (rev) such as a credit card, Auto (auto) which is self explanitory, Collection (coll), open, Lease (leas), or even Education (edu) for student loan.
Current balance is the amount owed the last time it was reported and terms is the minimum required payment. Terms also includes a number such as "72" for a 6-year auto loan or "360" meaning a 30-year mortgage.
Continuing to the right you may see columns for Past Due, Months Reviewed, and 30, 60, and 90+. This lists amounts past due, months reviewed (it should say 12 for a 1-year old account, etc.) and may then have numbers under the 30, 60, and 90+. This is the number of 30, 60, and 90+ day lates that the account has.
The last columns are usually called status and, if it is a trimerged account, it should say source. Status fairly self-explanitory and includes comments such as "as agreed", "current was 30", "paid", "collection", "charge off", "inactive", "paid collection", "settled" for less than owed, and even "bankruptcy". The source is just the credit reporting agencies that are listing the account. They are Trans Union (TU), Experian (XP) and Equifax (EF).
Below each tradeline, you may see a comments section. Usually this is pretty easy to understand and may include dates of late payments, original creditors in the case of a collection, or other notes.
Below the tradelines area is usually "Public Records" that would include any reported liens, judgements, bankruptcies, etc. There should also be date filed, status date, amount and identifying information including court, docket number, action type, amount and status.
The next section is usually inquiries into your account for the last two years and who inquired. They may be broken down into "hard inquiries" which signifies you applied for a loan or credit card or "soft inquiries" which you either pulled yourself or by an existing creditor to check up on you. It could also happen before a company send you a pre-approved offer of credit. While a hrd inquiry may lower your score, a soft inquiry will not.
Confused yet? If you need to, read each of the above paragraphs while looking at your report. Again, while they all do not look the same, this information should be generic enough to help you understand it a little better.
Also, many times the issuing company will give you a guide on how to read their particular report. These can be very beneficial if they give you a good breakdown of what area contains what information.
Check back frequently or add this to your rss feed, as you do not want to miss even one post.
Scott
Scott Swinford is an Executive Consultant for the US Consumer Credit Restoration Association and a Certified Mortgage Planning Specialist in Northwest Indiana. If you have any questions, you can send email to scott@USCCRAonline.com.
When you first look at the report, you should see your personal information. Make sure that it is all correct down to the spelling and middle initial. You should also see a current address, date of birth and social security number. Once again, review all this IDENTIFYING information. This how you know this report is about YOU!
Next you should see your "tradelines" or a list of your creditors. Sometimes they will be in alphabetical order and sometimes they will be in order from the highest to the lowest monthly payment. Usually ones with a balance will be listed first with closed accounts following.
You will see the name of the creditor and an account number. Make sure these are correct. Sometimes you will see the creditor listed twice with slightly different account numbers if you are looking at a "tri-merge" account like a mortgage officer would get. If the high credit and balance is the same, it is probably a reporting issue with one of the credit bureaus. You can ask that it be corrected, but in the mean time if someone is looking at your credit for a loan, point out the error so they do not assume you have to pay it two times.
The next columns to the right usually include date reported, date opened and date of last activity. Make sure these are correct, especially if you have been making payments and the date reported is not recent. These are important if you have derogitory information, as the longer ago it was, the less it effects your score.
To the right of that you should see high credit, type of account, current balance, and terms. High credit is your limit expressed in dollars (10,000). Type is usually mortgage (mtg), Installment (inst) such as a loan with a preset number of payments, Revolving (rev) such as a credit card, Auto (auto) which is self explanitory, Collection (coll), open, Lease (leas), or even Education (edu) for student loan.
Current balance is the amount owed the last time it was reported and terms is the minimum required payment. Terms also includes a number such as "72" for a 6-year auto loan or "360" meaning a 30-year mortgage.
Continuing to the right you may see columns for Past Due, Months Reviewed, and 30, 60, and 90+. This lists amounts past due, months reviewed (it should say 12 for a 1-year old account, etc.) and may then have numbers under the 30, 60, and 90+. This is the number of 30, 60, and 90+ day lates that the account has.
The last columns are usually called status and, if it is a trimerged account, it should say source. Status fairly self-explanitory and includes comments such as "as agreed", "current was 30", "paid", "collection", "charge off", "inactive", "paid collection", "settled" for less than owed, and even "bankruptcy". The source is just the credit reporting agencies that are listing the account. They are Trans Union (TU), Experian (XP) and Equifax (EF).
Below each tradeline, you may see a comments section. Usually this is pretty easy to understand and may include dates of late payments, original creditors in the case of a collection, or other notes.
Below the tradelines area is usually "Public Records" that would include any reported liens, judgements, bankruptcies, etc. There should also be date filed, status date, amount and identifying information including court, docket number, action type, amount and status.
The next section is usually inquiries into your account for the last two years and who inquired. They may be broken down into "hard inquiries" which signifies you applied for a loan or credit card or "soft inquiries" which you either pulled yourself or by an existing creditor to check up on you. It could also happen before a company send you a pre-approved offer of credit. While a hrd inquiry may lower your score, a soft inquiry will not.
Confused yet? If you need to, read each of the above paragraphs while looking at your report. Again, while they all do not look the same, this information should be generic enough to help you understand it a little better.
Also, many times the issuing company will give you a guide on how to read their particular report. These can be very beneficial if they give you a good breakdown of what area contains what information.
Check back frequently or add this to your rss feed, as you do not want to miss even one post.
Scott
Scott Swinford is an Executive Consultant for the US Consumer Credit Restoration Association and a Certified Mortgage Planning Specialist in Northwest Indiana. If you have any questions, you can send email to scott@USCCRAonline.com.
posted by Malinut at
9:39 PM
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