How to Understand Your Credit Report and Consumer Rights

If you’ve never read a credit report before, you might look at it and wonder why they wrote it in Greek. You don’t need to go back to school to learn how to read the figures and strings of numbers—but a little baklava can’t hurt. A credit report is divided into four basic section—personal information, credit history, public records and inquiries.

Difficulty: Easy

Instructions

Personal Information Section

1. Check your personal information for accuracy. Make sure that your name, address, aliases, previous addresses, social security number and date of birth are all correct.

Credit History Section

2. Check to be sure that all the creditors listed are accounts that you've actually held.

3. Check each listing to be sure that the name of the creditor and account information is correct.

4. Check to be sure that the opening and closing dates are correct.

5. Make sure that each entry lists the right type of account.

6. Check your payment history for each account.

7. Be sure that the current account status is correct: closed, open, inactive or collections.

8. Check that the monthly payment listed is accurate. This could be a big determining factor in your credit status.

9. Repeat with each additional entry for accuracy.

Public Records Section

10. Strive for a blank public records section. This section won’t list what a great public servant you are—rather it lists things like bankruptcies, tax liens and judgments against you.

11. Check to be sure that any entries in your public record section are accurate. You don't want to be carrying someone else's bad marks on your credit report.

12. Make a note of the reporting agency in case you need to have your credit record updated.

13. Check the date of the decision or ruling to see if it should be removed. By law, credit reporting agencies have to remove information that is out of date.

14. Make sure that any disputed accounts are listed as disputed.
    

Inquiries Section

15. Check the list of inquiries into your credit history. They may be divided into sections for Regular, Promotional and Requested inquiries.

16. Check the inquiries against your own records of applications for credit. Make sure that each listed inquiry is under the right section.

17. Check the name, address, phone number and date in each entry to be sure that only legitimate inquiries are made on your account. A request from a creditor you don't recognize could mean someone is using your identity.

Understaning Consumer Rights

18. Visit the Federal Trade Commissions Web site (see link below) for a full list of your consumer rights.

19. Write to the FTC to request a written copy of your rights at:
    
    Consumer Response Center
    Room 130-A
    Federal Trade Commission
    600 Pennsylvania Ave. N.W.
    Washington D.C. 20580

Tips & Warnings

• You must be informed if your credit report has been used against you and you’ve been denied credit, insurance or employment based on an adverse report.
• Any agency that denies you credit, insurance or employment based on your credit report must provide the name, address and phone number of the credit reporting agency they used.
• You are entitled to a free credit report (you will have to verify your identity) if you: o Have been denied employment, insurance or credit based on your report. o Are a victim of identity theft. o Are on public assistance. o Are unemployed but expect to apply for employment within 2 months. o Believe your file contains inaccurate data due to fraud.
• Every U.S. citizen is entitled to a free credit report from each of the major credit reporting agencies each year.
• You have a right to know your credit score. You may be charged for this information, however.
• You have the right to dispute inaccurate or incomplete information.
• You have the right to limit access to your credit report.

Who Can Help Sponsored

• How strong is your score?  Did you know checking your own credit won’t affect your score? Click here to see yours in two easy steps from Experian.