Okay, everyone tells you that you need to get a free copy of your credit report and now that you have it, you have no idea what in the world it says. Just because you have the report in your hands, does not mean you will understand all the little abbreviations and other information on the report. Therefore, how in the world can you work on repairing your credit if the report looks like it is written in a foreign language? The solution is simple; this information will make understanding your credit report a snap.
The I.D. section is nothing more than the identification part. Here it will list your name, current address, social security number, date of birth, and if you have a spouse, their name. Be sure to read this information to ensure everything is correct.
Now comes the hard part. The next area is your credit history. It will list all of your open and paid credit accounts. Normally, the format is the company name, which is the company that is filing the report on your credit – good or bad. Next will be the account number. This is the number that the company uses to distinguish one client from another. The information that comes next is the person that is responsible for the account and the type of participation you have with that account. The most common abbreviations in this area include I for individual, U for undesignated, J for joint, A for authorized user, M for maker, T for terminated, C for co-signer, and S for shared. In the next column will be the date that the account was opened. Next is the amount of months that this account has been reporting. The date of the last payment or charge on the account is next. Next, you will see the highest amount that was charged on the account or the credit limit that you have with this account. If this account is an installment loan, then you will see the amount of the original loan in this column instead of a credit limit. The next column will give the number of installments or the amount of your monthly payments. In case of revolving accounts, there will be nothing in this column. Next is the term of the account. This will give information regarding the number of installments or monthly payments. Then comes the balance. This is what is still owed on the account. Past due amounts will be found next if you are past due on this account. The last column is the status of your account. Here you will find more abbreviations that tell what type of account you have; O is for open, R is for revolving, and I is for installment.
The next area on your credit report is the collection accounts section. In this area, you will find any account that was referred to collection agencies in the past seven years.
The next section is the Courthouse records. Here you will find all public records, which include such items as tax liens, bankruptcy records, collection accounts, overdue child support, and judgments.
The last section of your credit report is the inquiry section. Here you will learn all the businesses that have received a copy of your credit report in the past two years.
For your information:
Any credit and collection accounts will stay on your report for seven years from the date of the last activity reported. Bankruptcy information will be on your credit report for 10 years from the date you filed. All other records are usually only recorded for seven years.
