Your credit score can be a good way of getting a sense of your financial health. But how do you know what your credit score is, what this number tells you, and what you can do to potentially build your credit history? This starts by understanding how to access and read your credit report. Let’s break down what goes on it and how to read it properly.
How to Get Your Credit Report
The easiest way to get a hold of your credit report is to go to AnnualCreditReport.com[1]. From here, you can get a free copy of your report once a year from each of the major credit bureaus: Experian, Transunion, and Equifax.
You can get a good look at your credit score throughout the year by requesting a report from one bureau at the beginning of the year, from the second bureau four months after that, and from the third bureau four months after that.
Reading Your Credit Report Step by Step
Here are some of the things you’ll find on your credit report, what they mean, and how you can review them to make sure there are no mistakes.
1. Personal Information
When you’re reading your credit report, your first step is to make sure the personal information listed is correct. This information includes:
- Your full name
- Former names, like a maiden name or frequently used alias
- Your Social Security number
- Your birth date
- Your current address
- Previous addresses
- Your phone number
- Your email address
Make sure there aren’t any errors in any of these areas, like typos or a wrong address. Any error leaves an opening for mistakes to show up on your credit report, and could even have an impact on your credit score.
2. Employer History
Often, you’ll find a list of your employers and the dates you worked there. This isn’t always a complete list, especially for people who have worked a lot of different jobs and have some side hustles on the go. Don’t worry if there are gaps in your career. But if there are jobs listed that you didn’t have, it could mean there is an error.
3. Account History
Your report should show all your credit accounts, which includes all your personal and joint accounts, plus accounts that list you as an authorized user, generally for the past decade. You’ll find open and closed accounts there, but some closed accounts will fall off after a certain amount of time.
Just like with your personal and employment information, what you’re looking for here is errors. Are there any accounts listed that surprise you? Look for anything that doesn’t match your personal records.
4. Payment History
Every account that’s listed on your credit report should have a payment history with a status report, like:
- Paid
- 30 days late
- 60 days late
- 90 days late
- 120 days late
- 150 days late
Look at every note that says a payment was overdue. If it's inaccurate, get in touch with the creditor and ask them to fix it. You can also go directly to the reporting bureau.
5. Current Balances
Your account balances show up in two ways:
- The current balance on each account as of the last date your creditors reported to the credit bureau
- The highest balance in the history of the account
Make sure these are accurate, making a note of any errors you find and following up on these. It’s important to get these removed because any incorrect information could impact your credit score, which could hurt your chances of qualifying for a personal loan.
Want to apply for a personal loan but don’t know how? Click here to learn more!
Want to apply for a personal loan but don’t know how? Click here to learn more!
6. Names of Creditors
Each listing on the report should have the name and contact information for the creditor and the date you opened the account. Review this like you did with your personal information and look for errors.
7. Credit Limits and Amounts
These lists show how much you owe on any loan accounts from when the information was reported on the account that month. For revolving credit accounts like a line of credit or credit card, this will also show the credit limit for that account.
Go over each and look for any error. Keep in mind that this number is reported once per month, so it may be slightly different from the balances shown when you log in to each account.
8. Account Status
Each account will have a specific listing showing its status as of that month. Here’s what you might see:
- Open: The account is currently active.
- Closed: The account is no longer active.
- Paid: The balance was paid in full.
- Refinanced: The balance was paid in full by taking out a new loan.
- Transferred: The debt was moved to another company.
- Foreclosed: The account has gone into default and the lender has taken back the collateral on the loan (such as a house in a foreclosure or the car in an auto loan).
- Charged Off: The account is at least 90 days past due and considered delinquent.
Make sure to check for any errors on any of these accounts. They’re more common than you might think.
9. Public Records
Your report also includes public records of your debt, like bankruptcies, foreclosures, repossessions, and similar actions. Unfortunately, these records are almost always damaging. Generally, public records and bankruptcies can stay on your credit report for seven to ten years.
Check the public records for accuracy and for any listing on your record after it should have been removed.
10. Credit Inquiries
The last section of your credit record shows who has looked at your credit information. In this section, you’ll find two kinds of listings:
- Soft inquiries or “soft pulls.” These usually happen when a creditor does a check of your credit report to see if they can pre-qualify you for some type of loan.
- Hard inquiries. These typically happen when lenders check your credit after you’ve applied for a loan.
Soft inquiries generally don’t impact your credit score. Hard inquiries do. Look at all inquiries carefully. They can be one of your earliest warning signs of attempted identity theft.
What to Do If You Find a Mistake
Getting errors removed can be time-consuming, but it’s an important thing to do if you do run into any mistakes on your report. It starts with contacting the credit bureau whose report showed an error. Include the exact error, description of the actual situation, and copies of any proof you have. After that, you have to wait for them to respond, then move forward with whatever their instruction is. The sooner you start this process when you find an error, the better.
Disclaimer: The information contained herein is provided for free and is to be used for educational and informational purposes only. We are not a credit repair organization as defined under federal or state law and we do not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit. Articles provided in connection with this blog are general in nature, provided for informational purposes only, and are not a substitute for individualized professional advice. We make no representation that we will improve or attempt to improve your credit record, history, or rating through the use of the resources provided through FreshStart Blog or CreditFresh website.
