Understanding Credit Reports
Your credit report is a detailed record of your credit history. Understanding how to read it is the first step in effective credit repair.
What is a Credit Report?
A credit report is a detailed summary of your credit history, compiled by the three major credit bureaus: Experian, Equifax, and TransUnion. Lenders, landlords, and even employers may review your credit report to assess your financial reliability.
Each bureau maintains its own file on you, which is why the information (and errors) can differ between them.
Report Sections
Credit reports are divided into several key sections:
Personal Information
Identifying information including:
- Full name and any variations/aliases
- Current and previous addresses
- Social Security Number (partial)
- Date of birth
- Current and previous employers
Account Information (Tradelines)
The largest section, showing all credit accounts:
- Credit cards
- Auto loans
- Mortgages
- Student loans
- Collection accounts
Credit Inquiries
When you apply for credit. These can temporarily lower your score.
When you check your own credit or for pre-approved offers. These don't affect your score.
Common Errors to Look For
When reviewing your credit report, watch for these common errors:
- Accounts that don't belong to you (possible identity theft or mixed files)
- Incorrect account balances or credit limits
- Late payments reported when you paid on time
- Accounts listed as open that you closed
- Duplicate accounts (same debt listed multiple times)
- Outdated information that should have aged off (most negative items should be removed after 7 years)
Reading Tradelines
Each tradeline on your report contains detailed information:
Account Name: Capital One
Account Type: Credit Card
Account #: ****1234
Status: Open
Date Opened: 01/2020
Credit Limit: $5,000
Current Balance: $1,200
Payment Status: Current
Payment History: OK OK OK OK OK 30 OK OK...
The payment history uses codes to show your payment status each month:
