Free Article: Credit Repair

You are here:
Directory | Credit Repair |

Learn How To Read Your Credit Report
By Myles Johnstone

Credit reports are much easier to read now than in the past, because years of pressure from consumer advocates and regulators led to significant changes in the credit-reporting industry. The rise of identity theft was a key consideration for lawmakers when Congress wrote the Fair and Accurate Credit Transactions Act of 2003, which amends the Fair Credit Reporting Act. During that process, consumer advocates and others called attention to the growing importance of consumers understanding how the credit system works.

These days, bad marks on your credit report can determine whether you land the job you're applying for, how much you pay for auto and homeowners insurance, and your credit card interest rate, plus whether you have to pay your utility or cell phone company a deposit.

But, despite tougher laws, including free reports for consumers, centralized fraud reporting, and more pressure on creditors to respond to consumers' complaints, the credit-reporting industry is still, to a large degree, a black box, and credit reports are not nearly as clear and understandable as they could be. Consumers still get confused.

You should focus on identifying what's bad on your reports and the information you'll need for planning your repair effort. There are many different styles and formats of credit report, but most of them derive from one of the three super-bureaus that supplied the information being reported. Each of the three main credit bureaus uses a different format, plus each bureau's format varies depending on whether you request the report online or order it by phone or mail.

On top of that, regional credit bureaus, from which mortgage lenders and others often buy reports, use their own unique format to list your credit information. The instructions are organized around identifying the basic information you need for repairing bad credit:

1. Credit name (and type of creditor)
2. Account number
3. Status
4. Lateness patterns

Some of the information, such as your name and address, won't be new to you, but it's useful to know what the credit bureau has listed anyway. Tiny mistakes in any of the most mundane information can affect your credit rating, especially if it means you've been confused with someone else with a similar name.

Also, each credit bureau offers information on its web site on how to read credit reports and how to submit a dispute, and also will mail you that information if you request your report by mail. When communicating with the credit bureaus, be sure to include the credit report number at the top of your report. Experian calls it the "report number," TransUnion says "file number," and Equifax refers to it as a "confirmation number."

About the Author
Myles Johnstone writes exclusively for finance related sites such as Refinancing Finance Info.com, Vehicle Finance Info.com and finance Solutions info.com where he writes about credit repair

Source: Top Finance Articles

NOTE: You may only use this article if the source, author details and links remain and are kept active. We use copyscape and other similar tools to ensure our content has this information with the article.

 

Related Credit Repair Articles:

4 Ways To Help Boost Your Credit Score
5 Questions You Must Ask A Credit Counseling Service Before Deciding
8 Solid Tips When Applying For Credit Cards
A List Of Rights You Have Against Debt Collectors (Part 1)
A List Of Rights You Have Against Debt Collectors (Part 2)
A List Of Rights You Have Against Debt Collectors (Part 3)
All Women Need To Read This - Understanding The Equal Credit Opportunity Act
Applying For A Credit Card - Check Out These 5 Comparison Shopping Tips
Are You A High Risk Or Low Risk Credit Applican - Understanding Your FICA Score
Are You Unemployed - Learn The Smart Way To Utilize Your Credit & Your Cash
Benefits Of A Debt-Management Plan
Benefits Of Working With A Credit Counseling Agency (Part 1)
Benefits Of Working With A Credit Counseling Agency (Part 2)
Cleaning Up Your Credit, Without Paying
Disputing With Credit Bureaus - Know Your Rights
Filing For Bankruptcy - Which Plan Is Right For You
Financial Records - Create An Effective Filing System
How Being Frugal Can Help You Gain Financial Independence
How Identity Theft Can Crash In Innocent Person's Credit
How To Build Credit In Your Own Name After A Divorce
Innovis - The Credit Report You've Probably Never Heard Of
It's Tough To Save Money When You Are Already Broke – But You Can Do It!
Learn How To Have Your Student Loans Canceled
Learn How To Read Your Credit Report
Myth - Closing Credit Accounts Will Help Your Score
Questionnaire To Determine If Your Future Spouse Is Financially Compatible
Relationships & Money - Research Your Partner's Debts Before Making Big Choices
Saving Money & Becoming Debt-Free Requires Deep Changes
Staying Out Of Debt With The IRS At Tax-Time
Talking With A Creditor - 5 Steps Of The Negotiation Cycle
The Benefits Of Keeping An Open Checking Account
The Importance Of Keeping Good Financial Records
The Shocking Truth Behind Credit Report Inaccuracies
Ways To Get Out Of Debt & Save Money (Part 1)
Ways To Get Out Of Debt & Save Money (Part 2)
Ways To Get Out Of Debt & Save Money (Part 3)
What Are Rapid Rescoring Services & How Can They Help My Credit
What To Do When There Is A Bank Error In Credit Reporting
What's The Best Time To Negotiate With Creditors
Why Do So Many Adults Have A Hard Time Managing Their Money

A few shorter credit/debt repair articles:

2 Reasons Why Big-Ticket Purchases Can Help Your Credit
3 Additional Ways Of Adding Positive Information To Your Credit File
3 Of The Biggest Credit Repair Mistakes You Must Avoid
3 Ways To Protect Yourself From Credit Card Fraud
6 Ways To Protect Your Social Security Number
11 Ways Your Identity Can Be Stolen
Applying for Credit Cards With No Credit History
Are Retail Stores Risking Your Credit Card Numbers
Discipline Yourself When It Comes To Spending Money
Having No Credit Is Worse Than Having Bad Credit
Learn How To Stop Collection Agencies From Harassing You
More Reasons Not To Close Older Open Credit Accounts
Timing Is Important When Negotiating A Settlement With The Bank
Tips To Help You Negotiate With A Creditor
Using Local Merchants To Help Get Good Marks On Your Credit Report
What Marks Should I Accept On My File From A Creditor?

< Back to more recent credit repair articles

You may also be interested in our Finance articles.