Does reading your credit report make you feel like this? 

Getting a copy of your credit report is simple to do right from your home computer using AnnualCreditReport.com.  When you have your credit report, you'll be able to see what your creditors are saying about you. However, credit reports can be a little confusing and very intimidating. In this post, you'll find a step-by-step explanation of how to read and interpret your credit report.

Section One: Your Personal Information

Here you'll find identifying information like your:

• name
• current address
• social security number
• date of birth
• spouse's name (if applicable)

Don't just skim over this section. Make sure everything is correct. One bad piece of information and the credit history listed on your report could be wrong.

Section Two: Credit History

The Credit History section contains a list of your open and paid credit accounts and indicates any late payments reported by your creditors. It is extremely important to read through this section very thoroughly. If you find any information that is incorrect or accounts that don't belong to you, you'll need to submit a dispute letter to the credit-reporting agency.

• Company Name - identifies the company that is reporting the information.
• Account Number - lists your account number with the company.
• Whose Account - Indicates who is responsible for the account and the type of participation you have with the account. Abbreviations may vary depending on the reporting agency but here are some of the most common:
  
  
  • I - Individual
  • U - Un-designated
  • J - Joint
  • A - Authorized User
  • M - Maker
  • T - Terminated
  • C - Co-maker/Co-signer
  • S - Shared
• Date Opened - This is the month and year you opened the account with the credit grantor.
• Months Reviewed - Lists the number of months the account history has been reported.
• Last Activity - Indicates the date of the last activity on the account. This may be the date of your last payment or last charge.
• High Credit - Represents the highest amount charged or the credit limit. If the account is an installment loan, the original loan amount will be listed.
• Terms - For installment loans, the number of installments may be listed or the amount of the monthly payments. For revolving accounts, this column is often left blank.
• Balance - Indicates the amount owed on the account at the time it was reported.
• Past Due - This column lists any amount past due at the time the information was reported.
• Status - A combination of letters and numbers are used to indicate the type of account of the timeliness of payment. Abbreviations for the type of account are as follows:
  
  
  • O - Open
  • R - Revolving
  • I - Installment
• Date Reported - Indicates the last time information on this account was updated by your creditor.

Section Three: Collection Accounts

If you have accounts that have been referred to collection agencies in the last seven years, this is where they will be reported. The name of the collection agency will be listed along with the amount you owe and, in some cases, their contact information. If a collection is listed on your report that doesn't look familiar to you, contact the credit bureau and submit a dispute letter.

Section Four: Public Records

Here you'll find a listing of public record items that reflect your history of meeting financial obligations. Such as:

• Bankruptcy records
• Tax liens
• Judgments
• Collection accounts
• Overdue child support

Look closely at all the information listed here. If anything is mistaken, contact the credit bureau and submit a dispute letter.

Section Five: Additional Information

This section consists primarily of former addresses and past employers as reported by your creditors.

Section Six: Inquiries

Contains a list of the businesses that have received your credit report in the last 24 months. If you find the names of businesses that sound unfamiliar, you should find out who they are and why they're looking at your credit! The credit-reporting agency may be able to help you with contact information.

If you find out that you have more debt that you thought and need help ELIMINATING YOUR DEBT once and for all, our Debt Solutions Specialist can help you find the right program to fit your goals.  Click the link below to get a FREE Debt Summary based on your debt and start heading towards becoming debt free today!

photo by: Kay Kim

Reading a credit report can be confusing, but it is much more simple than you think.  This video from About.com will walk you step by step through a credit report and explain just what it is you are looking at.

If you don't have a current copy of your credit report, you can get a Free credit report at www.annualcreditreport.com.

So, how do you Read a Credit Report?

Now that you have carefully reviewed your credit report, you have a better understanding of what creditors are seeing when you apply for a loan. 

If you found any mistakes or debts that you do not believe you owe, you can dispute these errors and have them corrected by the credit reporting agencies. Credit Card Debt Depair is easy and you can do it yourself!

If you have more debt than you realized or more debt than your monthly budget can handle, there are programs that can help.

• Debt Consolidation or Debt Management will reduce your monthly payment, reduce your interest rate, eliminate creditor fees, and have you out of debt in just 3-5 years! This type of program is great if you are basically current or just starting to get behind on your monthly payments, but you have high interest rates and fees.

• Through the Debt Settlement program, your Debt Solutions Specialist will work with you and your budget to determine a monthly payment that will work.  The money you pay monthly will be used by your personal Debt Negotiator to settle your debts for 50% or less than what you owe.  

If you would like some help getting rid of your debt, click the link below for a FREE Debt Elimination Summary!