How to Read Your Credit Report

You are entitled one free credit report a year. It's easiest to get this from a site like freecreditreport.com, or an independent credit bureau.

Examine your credit report, which may or may not include your credit score. The first thing you're likely to see is "Public Records". If there are public records on your credit report, you'll need to dispute those with the credit bureau.

Next, check to see if there are "Collection Items" on your credit report. These are debts that have been reported in your name as unpaid. If they've been turned over to collections, you will need to resolve them with the actual collection agency, not the credit bureaus - yet. Mark each down, and attempt to connect with the collections agency via email to resolve the debt. You may need to pay a lower fee to get the debt resolved.

Look down at the next area on your credit report, which should give you a monthly "map" as to whether or not your credit bills are reported paid on time. If you see some delinquent or non-payments, you will need to dispute these. Write a dispute letter to the credit bureau in question, including your contact information, the nature of the debt, and an explanation/requested action. Make sure to include a copy of the report.

Oftentimes, it's much easier to dispute issues on your credit report using a third-party service, such as Lexington Law. You will likely see your issues resolved much faster, as the bureaus don't want to deal with the resources and paper trail caused by dealing with a third party agency.