How to Interpret a Credit Report Summary
It is a smart and responsible move to check your credit report regularly at least once per year from all three major agencies (Experian, Transunion and Equifax). When you order a copy of your credit history for review, the report often displays a summary so that you can get an "at a glance" view of your accounts. With learning some key phrases, you can learn how to read and interpret this summary when checking your report.
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Instructions
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Scroll down to the credit summary section on your report. Look for a notification that states how many negative items you have listed on your history. Note that negative items can potentially harm your credit score.
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Analyze details about potentially negative items in the summary first because these are items you may have to investigate and dispute. These items include both public records and credit accounts, like loans and credit cards. For instance, if you've been more than 30 days late on an account, it shows up in this section. Check the explanation of what happened to result in the negative charge under the "Status" section. Check the "Account History" section to review any past issues. If you disagree with any of the negative information, write a letter of dispute to the credit agency, along with any documentation to prove your argument.
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Look at the number of positive accounts in the summary next to get an overall view of your credit history. If you have more than 20 positive accounts listed and just one negative account, this may indicates to potential creditors that the negative item could either be an error or isolated incident. Examine the positive accounts listed in the summary closely to gain an understanding of what actions can benefit your credit score.
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Check the number of inquiries listed in your credit report summary. If you have a large amount of hard inquiries, which happen when new creditors check your report to consider extending you new credit, it could harm your credit score. Soft inquiries, which are regular reviews by your current creditors or your own checks, don't negatively affect your score.
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