Have you checked your credit report recently? Pulling the report is the first step but knowing how to read it is just as important. Here is your step-by-step guide to reviewing your credit report so you know what to look for.
Step 1: Start with your personal information
Begin by reviewing your personal information. This section is usually first and typically includes your name, current and previous addresses, date of birth and other identifying information. Make sure everything is accurate. While minor variations, such as an abbreviated street name, are usually not a concern, incorrect addresses, unfamiliar names or other inaccurate information could be signs of an error or identity theft, and cause headaches down the road when records don’t match up.
Step 2: Review your credit accounts
Next, look through the list of your credit accounts. This section includes information about credit cards, auto loans, mortgages, student loans and other accounts that have been reported to the credit bureaus. Verify that you recognize every account and that the reported balances, payment history and account status appear accurate. If you notice an account you don’t recognize or information that doesn’t seem right, it’s worth investigating further.
Step 3: Look for negative information
Most credit reports also include a section for negative information, sometimes called “derogatory marks.” This may include late payments, accounts in collections, charge-offs, bankruptcies or other credit-related issues. If these items are listed, make sure they are accurate and belong to you. Negative information can remain on your credit report for 7-10 years, so reviewing this section regularly can help you identify errors that may need to be disputed.
Step 4: Check your recent inquiries
Your credit report will also show who has accessed your credit information in the past 2 years. Hard inquiries generally appear when you apply for new credit, while soft inquiries can occur when you check your own credit or when companies review your credit for pre-approved offers. Review the hard inquiries to make sure you recognize them. An unfamiliar inquiry could be a sign that someone attempted to apply for credit using your information.
If you find an error
If something doesn’t look right, contact the credit reporting agency that issued the report. Each credit bureau has its own process for disputing inaccurate information and is required to investigate your claim. You may also need to contact the lender or company that reported the information. Keeping copies of supporting documents can help make the dispute process smoother.
Your credit report tells the story of how you’ve managed credit over time. Taking a few minutes to review it regularly can help you catch errors, monitor for identity theft and better understand your overall credit health.
