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Reading Your Credit Report the Easy Way

By Karen Anderson
Published: Thursday, October 22nd, 2009

Useful credit report tips should tell you how to read your credit report. Sometimes, people take their credit reports for granted because it looks lengthy and full of technical terms. However, you need to understand everything that is contained in your credit report so you can keep tabs on your various accounts and also so you can also handle your debts easily. Do not get overwhelmed with all the technical terms and the length of your credit report. It does not take a rocket scientist to understand it.

Most credit bureaus or credit-reporting agencies divide your credit report into six major sections according to the purpose that the information contained in each section serve. The purpose of credit report tips is to simplify the technical matters discussed in a credit report by explaining more clearly the six major sections of a credit report. The first section is personal information. This section contains your name, address, date of birth and Social Security Number. Make sure that all information entered into this section is all correct because you might end up in a case of identity theft or other fraudulent activities.

A summary of your credit history will be the next section. It will reveal the number of accounts you have and the total amount of credit available to you. Also, the amount of credit you have used. For your second tip in this credit report tips: refer to this page if you want to find out the approximate debt to credit ratio that you have. On the third section you will find your account history. It composes about 80% of your credit report. The details of the information in each account along with the dates when it was opened and if it is in good standing will be contained in this section. This section will also contain your bill-paying record. It shows whether or not you paid your bills on time each month going as far as two years back. In short, this section determines your credit-worthiness.

Next tips among the credit report tips that you will be receiving are information on the third and fourth section. The third section displays your public information. It contains any judgment made against you in a court of law. Namely, these are bankruptcy, liens, evictions, garnishments, and other orders brought down by the court to pay a lender. The fourth section is the section of inquiries. Inquiries are the number of times a request has been made by others for your credit report. Having a low number of inquiries is good for your credit-risk. Inquiries will last in your record for two years and then it will simply be disregarded after.

Finally, the last piece among the credit report tips is the last section which is the creditor information. This is where you should look if you want to make disputes on any of your accounts. This section will contain details of information on your creditors including their contact information, address and phone number and if you are lucky you may even find website information and customer service email address.

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