It is important that you understand your credit report for your financial well being. Credit reports can inform someone of unknown fraudulent activity from their name or help with managing your financial health. Here is what you should look for when your request a credit report.
There are three main credit reporting agencies in the United States, and you are entitled to one free credit report each year. It is vital to that you take advantage of this in order to ensure you do not become a victim of credit fraud or identity theft. Getting a look into the major reports will help you better comprehend your credit score.
Credit reports are usually split up into four sections. They will have identifying information, your credit history, certain public records and a list of anyone that has requested to see your credit score.
Your identifying information provides insights to who you are as a person. This information is used to distinguish your credit report from that of other individuals. Your credit history is made up of any leases or agreements you have made with a creditor. Examples include mortgages, car loans, credit cards, and more. The total amount and the amount which you still owe will be included within the report along with your payment plan.
Public records on a credit report will only reflect your financial history. These types of records include bankruptcy filings, foreclosures, and more. The final section will include all that have requested a look at your credit report. A hard inquiry occurs when you request a look at your credit scores. This usually involves you filling out some sort of application. Soft inquiries can be initiated by agencies that would like to extend you credit offers, creditors that you have already entered an agreement with, and potential employers.
Monitoring your credit score can help you point out any obvious mistakes within the reporting. Credit bureaus can help clear these issues up. If looking at your credit score has caused you to do some reflection on your financial activity, you should contact Citizens Law Group. Our attorneys can help you manage and eliminate your debt. We work to get you the fresh start that you deserve.