How to read a credit report

Once you know how to read a credit report, you'll have a better sense of what to look for.

You have a different credit report at each of the 3 national credit bureaus: TransUnion, Experian and Equifax. Each bureau’s report may have information from different sources reported at different times. If this sounds overwhelming, don’t worry. Once you know how to read a credit report, you’ll get a good idea of the categories of information all credit reports show. You’ll also have a better sense of what to look for. So let’s jump right in.


Personal Information

Each of your 3 credit bureau reports shows basic identifying information like: name, current and past addresses, date of birth and employer. There’s also a space for a consumer statement, a place where you can explain certain parts of your credit report.

Look for:


Inquiries

This section lists creditors who’ve asked to see your credit report. When you apply for credit—a mortgage, credit cards, car loans and all sorts of other kinds of financing—the company considering giving you that credit will almost always pull your credit report to evaluate whether giving you the credit is worth the risk. This request is called a credit inquiry.

The reports you see show "hard" and “soft” inquiries. Hard inquiries are those that happen when you apply for credit cards or other types of loans and they stay on your report for 2 years. "Soft" inquiries, which aren’t listed on the reports creditors see, come from companies making you credit offers.

Look for:


Accounts

This area of the credit report lists all your accounts, open and closed, active and paid, individual and joint. For each account, you’ll see information on:

Look for:


Public records

If you have court judgments against you, they will be listed along with the settlement amount and the date the record will be expunged. This section also may show information about tax liens and bankruptcies.

Look for any listings, whatsoever. Public records showing up on any of your 3 credit bureau reports can seriously impact your credit. If there is anything listed in this section, make sure it’s accurate. If it isn’t, dispute it with the credit bureau as soon as possible.


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