How to Analyze a Free Credit Report

Free credit reports are great as long as you know how to read them. How frustrating is it to get a free credit report in the mail, but then to be clueless about reading and understanding what is in it? Your credit report is more valuable than gold today and you better prepare yourself to deal with any and all issues on the report. Here's step-by-step instructions for analyzing that free credit report.

Difficulty: Moderately Challenging

Instructions

Things You'll Need:

• Copy of your free credit report
• Calculator
• Pen
• Pencil
• Writing Pad

1. REQUEST your free credit report from the credit reporting bureaus (Equifax, Transunion and TRW). Go to www.freecreditreport.com for a copy of your financial records. Make it a regular habit to take a look at your free credit report every year. Prepare to contact the credit reporting bureaus and remove incorrect information from your report.

2. SIT down at a desk with a copy of the report and review it slowly. Go line by line analyzing all the information about your debts. Search the document for a "key" so you will know the meaning of all the codes and symbols on the sheets. Fax a copy of the report to your accountant in order for him to identify any tax implications.

3. HIGHLIGHT any information that you do not understand. Write down a reminder to research the free credit report information. Ask friends who may be knowledgeable to explain you credit report to you. If you are not comfortable with this try a free credit counseling agency. Determine exactly what is on the report and why it exists. If you see something that does not look familiar, investigate it immediately.

4. PROMISE yourself to review this information on a monthly basis.

Tips & Warnings

• Always know what is on your free credit report.
• Avoid free credit report scams that do nothing but give you more problems.

[omghow]

on 10/13/2009 Great suggestions for staying on top of your credit.

[ljstraight]

on 10/5/2009 All great steps and tips. 5 stars