What Do I need to Pay Attention to on My Credit Report
Reviewing your credit report should be an integral aspect of managing your personal finances. Credit reports contain a lot of information and complex jargon, leaving many people feeling overwhelmed at the thought of reviewing all of it. However, while all the information on your credit report is relevant, you don't need to review every detail. Here is a brief guide on the important details to review in your credit report.
4 Important Information Categories to Review in Your Credit Report
Your credit report contains information categorized into several sections. Experts advise focusing your review on the following fields:
1. Personal Information Section
The Personal Information section of your credit report should contain the following details:
Your names (including nicknames).
Your date of birth.
Your addresses and phone numbers.
Your personal statement.
Your social security number (partially concealed).
Your spouse's or co-applicant's names.
Your current and previous employers.
It is important to ensure that all your personal information is correct and up to date. Common errors include typos and listing outdated addresses or employers. However, errors such as unfamiliar names and addresses may be indicators of identity theft.
2. Public Records Section
The Public Records section of your credit report contains public details regarding your finances. For example, it may include details about bankruptcies and lawsuits. A Chapter 7 bankruptcy stays on your credit report for ten years after filing, while a Chapter 13 bankruptcy stays on the report for seven years – you can dispute the listing if this period has already elapsed.
3. Accounts Section
This is the longest section in your credit report. It contains information about all of your open and some of your closed credit accounts – collection accounts are detailed in a different section. This information includes each account's type, opening date, current status, credit limit, and payment history (required monthly, on-time, and late payments). It is advisable to verify these details and crosscheck them against your accounts.
Some of the common errors you may identify in this section include:
Closed accounts (accounts closed more than ten years ago shouldn't be listed).
Co-mingled accounts (accounts of other people with similar names).
Inaccurate account histories (such as late payments).
Delinquent accounts that are more than seven years old.
Overdue child support that is more than seven years old.
Missing notations from disputed credit card bills and charges.
Accounts that incorrectly list you as a co-signer.
Your current spouse's pre-marital debts.
It is important to dispute any incorrect or out-of-date details in your credit report's accounts section. However, inaccurate account balances on your current accounts shouldn't cause concern.
4. Inquiries Section
An inquiry essentially is a record of you or someone else (usually lenders and businesses) looking up your credit report. Inquiries are categorized into two types:
Soft Inquiry – This is an ordinary request for your credit report that doesn't affect your credit score.
Hard Inquiry – This is a special request for your credit report to evaluate your credit eligibility. Hard inquiries are usually made by lenders after you apply for credit. They can affect your credit score and will remain on your report for two years.
Soft inquiries shouldn't be a cause for concern. However, hard inquiries that you don't identify may be indicators that someone else is trying to borrow credit using your name.
Leave No Stone Unturned!
Mistakes in your credit report can compromise your credit score and personal finances. It is important to conduct a thorough review and consult a professional if necessary. National FCG is here to help you understand and rebuild your credit. Get in touch to learn more about how we can help.