How to Read a Credit Report

If you've been looking into improving your credit, you've probably heard that you should get a copy of your credit report. But if you've never looked closely at a credit report before, you might not know how to read it. Take a closer look at how to read a credit report and what to do if you spot any errors.

How to read a credit report

Your credit report is a record of your past and present credit accounts. It shows how you've managed credit over time, and it's what lenders look at (along with your credit score) when deciding whether they want to extend credit to you or not.

Usually, the information on your credit report will be divided into several main sections. It's important to access your credit report from each of the three major credit bureaus: Experian, Equifax, and TransUnion.

Personal information

This section will include basic information, including your name, any addresses associated with your credit report, your year of birth, your phone number, and any spouses or cosigners. If a lender has a different SSN on file, you could be a target of identity theft.

Account history

The account history section includes past and present credit accounts such as credit cards, personal loans, student loans, auto loans, and mortgages. Check for any accounts you don't recognize and any inaccurate negative marks.

Collections

If you've had a past-due account go to collections, you'll likely see a separate account show up on your credit report. Even if you think you don't have any accounts in collections, check your credit report closely.

Hard inquiries

A hard inquiry happens when a lender accesses your credit report to make a decision about lending you money. They might cause a small, temporary drop in your score. If you see any hard inquiries you didn't authorize, you should contact the relevant credit bureau right away.

What to do if you see an error on your credit report

Each of the three credit bureaus lets you dispute errors online or by mail. Before you file your dispute, gather any documentation that will help your case.

Look for common credit report errors like incorrect balances or accounts that don't belong to you. Make sure you dispute the error with every credit bureau that reports it. Once a credit bureau receives your dispute, it generally has 30 days to investigate.

Want to improve your credit?

Your journey to better credit starts with knowing what's on your credit report. If you want to start improving your credit, you don't have to do it alone. Kikoff is a credit-builder app designed for people with poor credit, limited credit, or no credit at all. 

We offer an array of other tools to help you build credit, too. We don't check your credit, and it's free to join. Create your account with us today!