Deciphering That Free Credit Report

SEATTLE - So, you just got a free copy of your credit report and you're wondering what to look for? There are basic 3 sections to your report: Personal Information, Credit Accounts and Requests for Your Credit History.

The PERSONAL INFORMATION section is what the credit reporting agency uses to identify you. This could include your name, address, telephone numbers, date of birth, Social Security Number, past and present employers, and spouse’s name. You want to make sure all of that is accurate.

The CREDIT ACCOUNTS section includes a list of current and past creditors and your payment history. It shows your bank accounts, credit cards, installment payments for retail goods, auto loans, and mortgages.

For each credit card, there will be detailed information, such as the date the it was opened and the date it was closed (if that applies), whether it is account “in good standing,” the credit line, current balance, amount past due, and payment history.

This section also includes public record information about you, such as tax liens, foreclosures, court judgments, accounts turned over to collection, and if you filed for bankruptcy.

“Those are highly negative things that hurt your credit score, says Evan Hendricks, Editor/Publisher of Privacy Times. ”If they're not accurate and someone else's information is mixed in to your credit report, then you want to mark that and dispute it.”

The Requests for Your Credit History section shows “all who have a permissible purpose by law and have requested in the recent past to review your information.” This normally happens when you apply for credit.

"This is where you can get an early warning sign of identity theft,” Hendricks points out. “If you live in Seattle and some car dealership in Texas pulled your credit report, that's a red flag and you should follow up with that.”

If you find a mistake worth correcting, dispute it in writing. If you have documents that prove your cause, include copies. Send your letter certified mail and keep a copy for yourself. By law, the credit agency has 30 days to verify that it's right or get it off your credit report. It doesn't always work that way, so you may have to keep at it. If the problem is bad enough and isn’t corrected, you may have to hire a lawyer.

NOTE: The new law that took effect on December first allows you to get one free credit report from each of the 3 reporting agencies every 12 months. That free credit report does not include your credit score. The bureaus still charge from $5 – $7 for that. In fact, when you log on to www.annualcreditreport.com and get switched to the Experian, Equifax or Trans Union web sites, they will ask you if you want to buy your credit score. You do not have to do that, you do not have to give your credit card number to get your free credit report. Just look for the link that says, “Free Credit Report.”

Should you get your credit score? If you're about to apply for credit in the next 60 days (refinance your home, apply for apply for an auto loan or mortgage), then you should get your score. You’ll want to see where you stand before you try to borrow money. If not, there’s no real reason to get it.

For More Information:

http://www.ftc.gov/
www.kiplinger.com
www.annualcreditreport.com is the only site you should use to get your free credit report.