Your success in managing credit is reflected in your credit report and score. A credit report is a history of everything you are doing with your credit now and what you have done with it in the past. A credit score mathematically represents the information in your credit report. Your credit report and score affect your ability to get credit and the terms/rates of that credit.
Understanding Your Credit Report:
Credit reports might seem really complicated. So let’s make them uncomplicated.
There are 6 key sections in a credit report:
- Personal information like your social security number and addresses
- Summary of your credit information
- Negative information from courts or collection agencies
- Trades: a current record of your accounts
- Hard inquiries made for your credit report
- Creditor’s contact information
You can visit annualcreditreport.com to get a free copy of your credit report every 12 months from Equifax, Experian, and TransUnion. The term high credit may seem odd, but it just means the highest amount that has been charged to an account. The little boxes you see in the Trades section indicate if you have any late payments and shows how late they were. If you see an error on the credit report, contact the credit reporting company immediately to start the process.
Credit scores don’t appear on the credit report. There are a few free sources, but most of the time you need to buy your scores or access them through another service. Want to see a sample credit report? Visit ConsumerCredit.com.
A credit report is a reflection of your financial health. If you are working towards consolidating credit cards, speak with a certified counselor at ACCC today! Call 800-769-3571.