It’s pretty essential to have a review of your credit periodically. But your credit report can be confusing to navigate as it contains a lot of information. Here’s how to interpret and understand your report.
If you’re reading a report for the first time, or if your report includes a lot of activities, a credit report can be complicated. Don’t let that prevent you from keeping up with your credit. You find it pretty easy to read once you learn how to.
For many reasons, experts recommend that you check your credit report once a year. The credit report is simply a collection of your debt history and can, therefore, affect your ability to open financial accounts as well as your loan interest rates.
To have an annual review of your report helps ensure your report is accurate and up-to-date. Again, if you’re a victim of identity theft, your report is likely to contain errors. Above all, reviewing your credit keeps you conscious of your financial situation.
The Anatomy of Your Credit Report
You might see several sections in your report. Still, most of the information it contains are grouped into four major categories, which are, creditor information, personal information, public record information, and credit inquiries.
Personal Information
This section is quite self-explanatory, but it mainly includes:
Public Record Information
If you have any open legal issues connected to your financial situation, they’ll all reflect in this section. These issues include:
If you are looking at a TransUnion report, you’ll also find an estimated date of removal for each of the items.
Creditor Information
This section contains the meat of your report. It also contains all your existing lines of credit. If you have a credit turned over to a collection agency, it’ll also be included.
Some of the basic information each account section contains include:
Generally, your good accounts and adverse accounts are split:
Adverse Accounts (negative item)
These are the accounts that negatively affect your credit. If you own an account in this section, you are likely to have made late payments, the account might have been sent to a collection agency, or the balance might be outstanding…
Continue reading the article and learn more about the credit report on Paul Verbiton’s blog.
We all have those moments when we have nothing important to do. Sometimes, it could be because you are home…
While these days booking a flight is just a click away thanks to technology and innovation, there are certain things…
So, you’ve organized a sleepover with your friends at your home or one of the friend’s house and you want…
Every traveler desires to get a perfect place to stay in. After all, who wouldn’t want to check in a…
The recent pandemic forced many people to adopt a much different lifestyle than they were used to. The government-mandated lockdowns,…
Traveling for the first time can give you mixed reactions such as excitement, hope and even at some point fear…