Consumer Credit Report Guide

Your credit report is an indication of how well you've managed your finances. Your credit files are complied by credit-reporting companies that get your financial information from creditors and lenders. You can work to maintain a good credit history by knowing what type of information creditors and lenders examine in your files to determine your creditworthiness.

Identifying Information

Your credit report will have a section known as identifying information. It includes your name, current and past addresses, your place of employment, Social Security number and other personal information. According to an MSN Money article, "The Basics: How to Read Your Credit Report," a vice president from the Experian credit-reporting company said people shouldn't be concerned about variations in the identifying section of their credit files. For instance, some creditors might report variations in the spelling of your name. Using your full name on all credit and loan applications without variations will reduce the chance that your credit file will accidentally include accounts that belong to another consumer who has a name similar to yours.

Public Records

It's best if the public records section of your credit report is empty, since notations in that section are typically an indication of serious financial problems that will significantly reduce your credit score. Among other things, the section includes information on bankruptcy, home foreclosure and accounts that have been turned over to collection agencies. Information on accounts sent to collection agencies generally remains on credit reports for seven years. Bankruptcy information typically remains in credit files for 10 years.

Credit Information

Accounts you have with credit card companies, banks, retailers and others are in the credit information section of your file. The section tracks your credit limits and loan amounts, the dates you open and close accounts, as well as whether you've paid your bills on time. The credit information section can have a significant impact on your credit score. For instance, scoring models may base as much as 35 percent of your credit score on your payment history. A lot of late-payment notations could significantly reduce your score. Lenders and creditors tend to view consumers who make late payments as credit risks.

Inquiries

The inquiry section of a credit file lists banks, creditors, insurers and others who have asked for copies of your credit report. Such requests come as you seek to open new accounts or refinance existing loans. According to a Fair Issac Co. (FICO) specialist quoted by MSN Money, FICO credit scoring models largely ignore inquiries. For example, multiple inquiries from lenders made within 30 days of a consumer getting a mortgage wouldn't be included in credit scoring because the scoring model knows you are shopping for just one mortgage. FICO scores are a measurement of creditworthiness, and they range from about 300 to 850. Consumers with higher scores are considered less of a credit risk.