Credit Cards Article

How to Understand Credit Reports

Author: William Blake

Managing your finances and being in control of your credit all begins with knowledge of your credit rating. To gain such knowledge you need to understand your credit report. A credit report at first glance can be confusing. At is full of account numbers, balances and scores that will mean nothing to you until you learn how to decipher the report.

Agencies Creating Credit Reports

There are three major credit-reporting agencies that will play a big part in your credit. These three are Experian, TransUnion, and Equifax. You should print a copy of your credit report from these three companies at least every 12 months. You can find out more about these companies online and they will show you how to obtain a free report.

What is Reported?

Creditors supply information to the credit reporting agencies. Since each agency receives information from different creditors, and the creditors have various manners of providing information, the information that their reports contain will vary.

What Makes Up the Credit Report?

A credit report is divided into four sections, identifying information, credit history, public records, and inquiries. Your identifying information is the part that identifies who you are. Their maybe hundreds of people with the same name but everyone has a different social security number. They will also confirm your driver\'s license number, address, and phone number.

Credit Background

Your background of credit will contain all information for accounts that presently have or have had in the past. This will include the name of the company extending credit and your account number with that company. There are always possibilities of errors so you want to review this section carefully. If you find an error you can contact the agency and have them make necessary corrections.

What Are Public Records?

If you have a criminal record, have ever been arrested and have had any judgements filed against you, these will be reported in the public records section of your credit report. You hope to have no information in this section.

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