Reading and Understanding Your Credit Report

A credit report contains all information pertaining to businesses that you do with it credit and lending organizations. It contains all the information about loans, credit cards and credit transactions. Apart from that it also contains personal information such as your name address, employer and your Social Security number. A credit bureau also corrects information from such a make records such as tax liens, bankruptcy filings and federal court judgments on matters pertaining to finance.

Since your credit report is such a wealth of information it is important that you review your credit report at least once every year. Since you have been provided with a right to access your credit report for free from all three credit bureaus at least once in front months, there is absolutely no reason why you shouldn’t order your credit report and ensure that everything on the record is in order. Reading and understanding a credit report can be confusing at first. Here is a summary of the different kind of information that is usually present from your credit report.

Personal Information on Your Credit Report

Your credit report contains personal information about you such as your name, address, employer as well as your Social Security number. This information is provided to the credit bureaus when a lender you have applied for credit to reports your account. It is not very uncommon to have mistakes on the credit report in the personal information section. You could have misspellings of your name, transposing of digits in your Social Security number, variations in the address etc. Whenever a different variation is reported to the credit bureau the credit bureau maintains the record of all the different variations on the credit report so that you can have a complete record of when and what information was reported and by whom when reviewing your credit report. It is important to check your credit report for errors and mistakes because a credit report is used by lenders to make a decision to approve or disapprove your credit application. Any mistakes and errors in your credit report could result in a credit application being denied. Simple mistakes over Social Security number and misspelled names can make the difference between an approved and are denied credit application.

For this reason it becomes extremely important that you review your credit report and file a dispute with the credit bureau for any errors and mistakes present on it. The fair credit reporting act gives you the right to dispute wrong information on your credit report with the credit bureau and compels the credit bureau to launch an investigation into your claim.

Account Information on Your Credit Report

a credit report contains information about all your credit accounts even accounts that have been closed in the past might still be present on your credit report. A closed account for a delinquent account is removed from your credit report after a period of seven years from the date that the account was closed or first reported as delinquent. Current and open accounts continue to be recorded on your credit report as long as the creditor keeps reporting to the credit bureau. Every account also has a status update listed below it. This status can be “late
current
current, was late in the past
closed
paid in full and closed
settled and closed” and so on.

This status summary reflects the status of the account in a nutshell. The meaning of this status is pretty much obvious just by reading it.

As mentioned before if any information on your credit report is inaccurate you have the right to dispute it with the credit bureau. The dispute process is easily started on wine through the website of the credit bureaus. You can also start a dispute with the credit bureau by sending them a dispute letter along with the required documentation to prove your claim. The credit bureau is mandated by the federal law investigate every claim and come up with a result within 30 days. The credit bureau days an additional 15 days if you send in additional information. The credit bureau requires the information provider to validate the information that you have disputed on your credit report. If the lender is not able to validate the information or provides an update than the information is removed or updated on the credit report respectively.