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Your free annual credit report from each of the major credit bureaus is an invaluable tool, enabling you to ensure that your credit is clean and clear, free of inaccurate and incomplete information. Requesting a copy of your credit report from Equifax, TransUnion and Experian is easy; simply visit AnnualCreditReport.com and sign up. The process is fast and, best of all, free of charge. You will have to enter a bit of information about yourself, but you will never be asked for your credit card number or your checking account information. However, once you have the report in hand, how do you read it?
Many consumers find that reading their free annual credit report is somewhat difficult. There are many different codes used on the report, as well as several different sections, each with its own important information. How do you make sense of your report? Here, you will find a handy guide to utilizing this information to the best effect.
Below your personal information, you will find a summary of your free annual credit report. This gives you immediate access to vital information, but few details. Information included here can be the total amount of credit available, trade line history, late payments for the preceding 24 months and the percentage of total credit you currently have available.
The next section details public records. Here, you will find information about liens, legal judgments, bankruptcies and more. Everything in this area is a matter of public record and is available to anyone checking your credit history.
Below the public records section lies your mortgage information. Of course, if you do not have a home loan, this area will be blank, or simply not included at all. Under this, you will find a section detailing any other loans you have, including car loans, personal loans, credit cards, any charge-offs in your history and more.
Another area of interest on your free annual credit report is the credit risk score section. This area details about what credit risk you pose to lenders. This is very important information, but it can be difficult to understand. The final section of your annual credit report deals with credit inquiries and alerts. If there are too many inquiries into your credit, you may find that your risk status goes up. The same applies to the number of alerts on your report. You will also find a section detailing any aliases you have used, your employment history and contact information for the credit bureaus.