Credit Report – How to Read a Credit Report
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As our credit report is so important to us learning how to read one is a skill, we should all learn.
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Although the layouts of credit reports differ slightly between each of the credit reporting agencies they are all fairly similar because, of course, the information contained in them is pretty much the same.
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There are normally four sections in the report each dealing with specific topics. It is important that when you go through checking it, you read each of the sections carefully and don’t make assumptions about the information you know off by heart. Each section has been entered onto the computer by someone who doesn’t know you and that gives plenty of scope for errors and typos.
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The very first section contains publicly available information such as bankruptcy or unpaid tax liens that you may have currently or have had in the past. Any bankruptcies will show for the previous 10 years while it will be 15 years if you have had unpaid tax.
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In the second section, you will find all the details of your credit history. It will include information such as outstanding balances, date the loan or credit card was taken out, whether or not the loan is just in your name and any late or missing payments you may have had.
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The information contained in the third section is split into two parts. In the first part are details of all the inquiries made about you when you have made applications for loans or finance. While in the second part the inquiries are related to existing accounts where lenders may be checking up on you for pre-approval offers and the like. It is also where your own requests for your credit report will show.
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And in the final section are all your own personal details that you would expect to find in a credit report.
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Once you have seen your first credit report you will be better able to understand how banks and loan companies can form such a strong picture of your creditworthiness from one.
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To get a copy of your credit report for free you should go to http://www.nationalcreditreport.com
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