How to read your credit report.

Your credit report is a snapshot of your financial situation. Understanding how to read it and what it’s based on can help you manage your credit and improve your credit score. You should review your credit report annually for accuracy and to make sure you haven’t been the victim of fraud or identity theft.

Here are the main sections of a credit report:

• Personal Information. Your name, address, Social Security number, date of birth, etc. Check for obvious errors.

• Credit History. A list of your open and paid credit accounts, including total loan amount, credit limit, how well you've paid the account, and any late payments. Make sure everything is correct (for instance, are closed accounts still listed as open?).

• Public Records. Includes delinquent accounts, bankruptcies, foreclosures, lawsuits, wage attachments, liens and judgments. Obviously, you want this section to be blank.

• Credit Inquiries. A list of everyone who’s asked to see your report in the past two years. There are two sections. Soft inquiries are from companies who want to send you promotional materials or from current creditors who are checking your account. Hard inquiries are made when you apply for new credit.

These factors are used to determine your credit score, which can range from 300       (worst) to 850 (best). Higher scores mean you're more likely to be able to borrow larger amounts at lower interest rates. Lower scores mean you're a higher risk, so you’re more likely to be offered lower amounts at higher interest rates—or be denied credit altogether!

There are three major bureaus that create credit reports: Experian, TransUnion and Equifax. Since each report may be slightly different, you should look at all three annually. You can request your reports for free by visiting annualcreditreport.com or by calling 877.322.8228.

Once you have your credit reports, if you’d like some tips on how to improve your credit score, please call us!