Understanding Credit Reports
This playbook provides a step-by-step guide to help individuals read and interpret their credit reports. It covers elements such as assessing personal information, understanding account histories, and identifying any inaccuracies.
Step 1: Obtain Report
Request your credit report from one of the three major credit bureaus or through an authorized website offering free credit reports.
Step 2: Verify Personal Info
Review the personal information section of your credit report to verify the accuracy of your name, address, social security number, and employment details.
Step 3: Check Accounts
Examine the accounts section closely for the status of each credit account, including the payment history, current balances, and account limits.
Step 4: Review Inquiries
Look at the credit inquiries section to see who has requested your credit information and ensure that you authorized these inquiries.
Step 5: Identify Negatives
Inspect the report for any negative information such as late payments, collections, or public records, and confirm whether these entries are accurate.
Step 6: Spot Errors
Carefully search for any discrepancies or errors in every section of your credit report.
Step 7: Record Findings
Document any inaccuracies or points of concern found in your report for future reference and disputes.
Step 8: Initiate Disputes
Contact the credit bureau and initiate disputes formally for any inaccuracies discovered in your credit report.
General Notes
Annual Report
You are entitled to one free credit report from each of the three major credit bureaus every twelve months, which can be obtained at AnnualCreditReport.com.
Report Differences
Different bureaus may have different information. It's important to check your credit report from each bureau.
Dispute Timeline
Credit bureaus typically have 30 days to investigate disputes and must send you the results of the investigation afterward.