The information in your free credit report is divided into different sections, with each section
having a different relevance to your credit. A creditor will look at each section with a
specific intent. And when you get your free credit report, it helps to be able to read the report
as a creditor does.
All the information in your free credit report is either supplied by creditors or comes from
public records. And most of the items reported go back no more than seven years. The information
may be presented with different titles but there are four basic category types in a credit report:
- Personal Identification Items
- Credit Accounts History
- Public Records
- Credit Report Requests
Your name, address, Social Security number, telephone number and where you work are recorded
in the personal identification section of your free credit report. Often included is how long
you've been at your current address and place of employment. Make sure that all the numbers are
correct, as it's easy for clerical errors to be made.
The history of your reported credit accounts includes such things as: the purpose of the
account, when it was opened, whether any payments were late and what's the current balance.
Also included will be any actions taken by collection agencies. This is the heart of your free
credit report and contains the two most important things a lender looks for. A lender
wants to see if you pay your bills on time, especially recently. And he also likes to see low
balances in your accounts with a mixture of account types.
The public records section of your free credit report contains information taken from public
documents about lawsuits, judgments, or tax liens filed against you, or whether you've declared
bankruptcy. Unlike other items, bankruptcies can be reported for up to ten years. Lawsuits
and judgments can also be reported for more than seven years, if the statute of limitations is
greater.
Anyone asking for a copy of your credit report has their name and address listed in the
report requests section of your free credit report. The listings are for requests within the
last year or within the last two years if it was an employer. A large number of report requests
makes you look risky to a creditor, so when seeking new credit, do so gradually. But the
requests for pre-approved credit offers, although listed in your copy of the report, won't
appear in copies sent to creditors.
In addition to the four information sections in your free credit report, there can also be a
personal statement section. This contains up to 100 words describing why you feel a particular
account is either in error or incomplete. And you only might write this after a creditor doesn't
resolve an account item to your satisfaction.
To get your free credit report and free 30 days of credit monitoring, please go to
free instant credit reports.
