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As you might have noticed this site emphasizes the importance of your credit score and credit report a lot. Your credit report is so important to everything in your financial portfolio. But in order to make your credit report work for you, you need to understand how it works. The following is what is on your credit report and what you need to be looking out for.
Aspects of the Credit Report
- Personal information
This is one of the most important parts of your report to pay attention to. You need to make sure that all the personal information on this document is correct. Your name, social security number, address, employment history, date of birth all must be correct. You do not want to have wrong information on there because your report could then be confused with someone else’s. That is how bad marks sneak onto your report and really mess with you. Be alert just in case some things suddenly change. Your information must to specific to you.
- Credit summary
This is a simple part of your report. This is a list of your credit activity, and it is organized for your convenience. It will list all the closed accounts you have. It will also list which accounts are past due, and which accounts are currently in good standing. Again, you need to make sure that there are no mystery past due accounts that may hurt you.
- Information on accounts
Each individual account will be detailed in this section. It will let you know what type of account each one is and when you opened it. Then it will list account balance, past due amounts and who owns the account.
- Inquiries
This will let you know who has viewed your report. It will be broken up into hard inquiries and soft inquiries. Hard inquiries hurt your credit score if they are done too often.
- Collection
This is a simple section. It just lets you know which accounts have been turned over to collections. Make sure that if you have any accounts in this section that it is correct.
- Public records
This sections deals with any garnishments, liens, bankruptcies, or other judgments against you.
Make Sure Everything is Correct
The main thing to do is too make sure that everything on your credit report is correct. Wrong information can have a bad effect on your score. Inaccurate information is something that is easily cleaned up. So do not get discouraged. You can get that report cleaned up!
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