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| How Credit Affects You |
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Understanding Your Credit Report
Check it Once a YearIt’s important to review your credit report at least once a year and pay especially careful attention to its four main categories: biographical information, account information, inquiries and public information.
- Biographical Information
Biographical information includes your name, address, Social Security number, date of birth and employment information. Check for the accuracy of your name (and former names if married), address (and previous address), Social Security number, date of birth and place of employment (including previous employers).
- Account Information
Account information summarizes your credit accounts. Lenders report on each account you have established with them, the type of account (bankcard, auto loan, mortgage, etc), the date you opened the account, your credit limit or loan amount, the account balance and your payment history. Check the names of lenders/creditors, dates when accounts were opened, current balances and credit limits. Pay particular attention to late payments listed and the current status of your accounts.
- Inquiries
The inquiries section contains a list of everyone who requested your credit report within the last two years. The report you see lists both "voluntary" inquiries (triggered by your own requests for credit) and "involuntary" inquires (such as when lenders order your report to use for promotional purposes like the credit card offers you may receive in the mail). These “involuntary” inquiries will not be shown to prospective credit grantors.
Knowing how many inquiries are in your credit file is important. Too many inquiries during a given period might indicate you are trying to get a lot of credit quickly — a red flag to lenders. The exception is when you are shopping for a mortgage or auto loan. Most consumers compare the loan rates from different lenders before getting a mortgage or auto loan. To account for this, any number of inquiries for a mortgage or auto loan requested within 30 days prior to a credit score request are generally only counted as one inquiry. In addition, auto and mortgage-related inquiries that occur within any 14-day period are generally treated as a single inquiry. Remember, it's okay to request and check your own credit report. In fact, it’s a good idea to do so. When you request your own report, it is considered a consumer inquiry. It won't affect your credit history, as long as you order your credit report directly from one of the credit-reporting agencies or through an organization authorized to provide credit reports to consumers.
- Public Information
Public record information includes bankruptcies, foreclosures, lawsuits, wage attachments, liens and judgments. Also included here is information from collection agencies about overdue debt.
Sample ReportThis downloadable sample credit report shows how these four main categories are typically displayed.
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