How to Easily Read Your Credit Report

The law entitles every consumer to a free copy of her credit report once a year. Consumers are allowed to view their reports with each of the three major credit reporting agencies--Equifax, TransUnion and Experian--for free. But once you get those reports, you need to know how to read them, and how to spot errors and possible fraudulent activity. Taking the time to review each report carefully is one of your best protections against identity theft, so the time you spend learning about your credit report will be time well spent.

Instructions

1

Gather all of your credit cards before you start reviewing the credit report. Having your credit cards available makes it easier to spot fraudulent accounts and accounts you no longer have.

2

Review the top part of the credit report. The first section lists your name, address and other identifying information. Contact the credit reporting agency at once if this information is incorrect.

3

Turn to the next section of the report. This section lists all of the accounts you have open, including your credit cards. Check that list against the credit cards you gathered in Step 1. Note any closed accounts that still show as open, then contact the credit agency and inform them the accounts are no longer active.

4

Review the activity listed for each of your accounts. If you had any missed payments, late payments or chargeoffs, they will be listed in this section. This section also lists the date each account was opened, whether it is an individual or a joint account, the date of last activity on the account and the outstanding balance.

5

Check the next sections of the credit report and look for any activity. These two sections list collection activities and courthouse records, and they will be blank if no such activity exists in your credit file.

6

Check the Additional Information section and ensure it is accurate. This section lists any prior addresses where you lived and any former employers that were reported to your creditors.

7

Review the Inquiries section of your credit report for anything you do not recognize. If you notice an inquiry you did not authorize, notify the credit reporting agency at once, since this could be an early warning sign of fraud on your account.