How to Read Your Credit Report: A Complete Guide

Your credit report is like your financial report card. Understanding how to read it is essential for managing your credit health. Here's a section-by-section breakdown.

Section 1: Personal Information

This section includes:

• Your full legal name (and variations)
• Current and previous addresses
• Date of birth
• Social Security number (partially hidden)
• Employment information

What to check: Verify all information is correct. Errors here could indicate mixed files or identity theft.

Section 2: Credit Accounts (Trade Lines)

For each account, you'll see:

• Creditor name
• Account number (partially hidden)
• Account type (revolving, installment, mortgage)
• Date opened
• Credit limit or original loan amount
• Current balance
• Payment status
• Payment history (up to 7 years)

What to check:

• Do you recognize all accounts?
• Are credit limits accurate?
• Is payment history correct?
• Are closed accounts marked correctly?

Section 3: Credit Inquiries

Lists who has accessed your credit report:

• Hard inquiries - From credit applications
• Soft inquiries - From you, employers, prescreened offers

What to check: Do you recognize all hard inquiries? Unknown inquiries could indicate fraud or errors.

Section 4: Public Records

May include:

• Bankruptcies
• Note: Tax liens and civil judgments are no longer included

What to check: Verify accuracy and that items are within the proper reporting period.

Section 5: Collection Accounts

Shows debts sent to collection agencies:

• Original creditor
• Collection agency
• Amount owed
• Date of first delinquency

What to check: Are collections accurate? Have you paid any that still show unpaid?

Common Codes and Abbreviations

• R1 - Revolving account, paid as agreed
• I1 - Installment account, paid as agreed
• 30, 60, 90, 120 - Days past due
• CO - Charge-off
• CLS - Closed
• CURR - Current

Red Flags to Watch For

1. Accounts you don't recognize
2. Wrong personal information
3. Incorrect payment history
4. Duplicate accounts
5. Outdated negative information
6. Wrong credit limits or balances

What to Do If You Find Errors

1. Document the error
2. Gather supporting evidence
3. File a dispute with the credit bureau
4. Follow up within 30 days
5. Check that corrections are made

Understanding your credit report is the first step to taking control of your credit health.