How to Read Your Credit Report

When you first see your Credit Report you must check your personal information to make sure it's accurate. Errors such as wrong name spellings, wrong middle initials and errors in Social Security are uncommon but not impossible.

Other information to check includes current and previous residential addresses, date of birth, telephone numbers, driver's license number, employer and your spouse's name. Make sure that the latter reflects her married identity and your last name. If your wife has used variations of her last name make sure they show up consistently in all documentations.

In the Credit History section you will find all the information regarding your current and past revolving credit accounts. From your files with each creditor account, check the creditor name listed, compare account numbers, amounts charged and status of each account.

Check dates you opened the account, the type listed such as mortgage car loan, revolving credit or department store credit card. You’ll see a code indicating the highest balance on the account, current balance (minus any payments made since you requested the report), minimum payments, status of the account: open, closed, inactive, paid, charge-off, collations, paid as agreed or settled.

The Public Record section is the one section you hope will remain forever blank. Marks in this part of your credit report can immediately sink any loan applications, including tax liens, bankruptcies and judgments. The only way to repair these is to pay them. Bankruptcies and judgments will drop off after seven years.

There are three mayor credit agencies in the United States, keep in mind that most companies take the scores provided by all three and work an average between the highest and the lowest number in order to give you a credit answer.