We are midway through 2006. Have you accessed your free credit reports yet? The federal Fair and Accurate Credit Transactions Act provides you with access to one free credit report from each of the nationwide consumer reporting agencies; Experian, Trans Union, and Equifax on an annual basis.
It is important to review your credit report because the information in your report is sold to creditors, insurers, employers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home.
Credit reports may contain errors which can negatively affect your attempt to obtain any of these services. Errors will remain on your file unless you take action to have them corrected or deleted. Additionally, reviewing your credit reports is one of the simplest ways to discover whether you have been a victim of identity theft.
A credit report is basically broken down into identifying information, credit history, public records, and inquiries.
Identifying information
Identifying information is just that – information that identifies you. There is also a consumer statement section that contains personal comments included at the request of the consumer.
Credit History
The next section is your credit history. Each entry will include the name of the creditor and the account number, which may be scrambled for security purposes. The entry will also include:
-
When you opened the account
-
The kind of credit (installment, such as a mortgage or car loan, or revolving, such as a department store credit card)
-
Whether the account is in your name alone or with another person
-
Total amount of the loan, high credit limit or highest balance on the card
-
How much you still owe
-
Fixed monthly payments or minimum monthly amount
-
Status of the account (open, inactive, closed, paid, etc.)
-
How well you've paid the account.
The list will include both open and closed accounts. Items will remain on your report for seven (7) years from the date of last activity.
TOP
Public Records
The public record section lists publicly available information about legal matters affecting your credit (usually in a negative way) including bankruptcies, judgments, and tax lines. The information contained in this section can remain on your credit report for as long as ten (10) years.
Inquiries
The final section is the inquiries. That section lists the businesses that have asked to see your credit report within the last twenty-four (24) months.
Inquiries are divided into two sections. “Hard” inquiries are ones you initiate by you filling out a credit application. “Soft” inquiries are from companies that want to send out promotional information to a pre-qualified group or current creditors who are monitoring your account.
Sample credit reports can be viewed at the following sites:
TOP
|
