How to read a credit report in Colorado or Colorado Springs
Getting a copy of your credit report is easy. Reading your credit report can be a tricky task whether your are looking for car credit or an auto loan in Colroado or just Colroado Springs.
A credit report is filled with information shimmering credit decisions, obligations, and payment blueprints. Your precise credit report contains thorough records of your credit and loans, plus public records, collections, your employment history, and former addresses etc..
That’s a lot of information to study– even when the subject is a familiar one. This makes the ColoradoCarCredit.com delivery system at www.ColoradoCarCredit.com a valuable tool. Especially if you live in Colroado Springs.
This is all information you’ll need to examine cautiously, particularly if you have plans to buy a vehicle in Colorado Springs. Errors on your credit report could hurt your odds of qualifying for a loan or force you to pay a higher interest rate than you deserve. Another huge advantage of the Colroado Car Credit program.
Getting a copy of your credit report is easy. Thanks to the Fair and Accurate Credit Transactions Act (FACT), you’re entitled to a free copy of your credit report from each of the three major credit bureaus every 12 months. To request a free copy of your credit report, all you need to do is call 1-877-322-8228.
The first major section of a credit report contains personal information, including your name, Social Security number, date of birth, phone number, current and previous addresses, and current and previous employers. Study each piece of data carefully.
If you see a Social Security number that doesn’t match yours or the wrong birth date, you need to alert the credit reporting agency about the error. Another consumer’s credit data may be mixed in with yours.
And you’ll also want to take a close look at the present and previous addresses and employers’ sections. A long list of places you’ve never lived could be another sign that another consumer’s credit file has been mixed with your own. Even worse, this incorrect information could be an indication that an identity thief has been applying for credit in your name.
The personal data section also provides a space for consumer statements. Once you review a credit report, you may want to add a comment to this section. If you’ve been a victim of identity theft, you’ll want to write a statement detailing the date you learned about the theft and the accounts affected.
The consumer statement section is your chance to comment on any accurate but negative information listed in your credit file. If you fell behind on some payments because of illness or loss of a job, you can say so here. And if you withheld payment on a credit account because of a payment dispute with a merchant, you can give your side of the dispute here.
Another important part of the personal information section of your credit report is the public records section. This section lists any public record information about you from local, state and federal courts, including foreclosures, liens, suits, judgments, bankruptcy filings, and collection items. Some states include overdue child support in this section.
The negative information listed in this section will stay on your credit file for quite a while – seven years or longer. So it’s important that all public information is accurate. Bankruptcy information can stay on your credit report for as long as 10 years, and unpaid tax liens can remain for up to 15 years. Several collection items that you don’t distinguish could be a sign of identity theft, so watch out for any unfamiliar or suspicious public records.
The next main segment of your credit report details your credit account histories. Information about mortgages, credit cards, auto loans, and student/other loans will be listed here in excruciating detail. Each account history includes the name of the company handling the account, such as the lender or mortgage company; the date the account was opened; the credit limit or loan amount; the account balance; the monthly payment; the most recent payment; the payment status such as the amount left unpaid after a due date and the number of days past due; and the account status (either opened or closed).
This section detailing your handling of credit accounts is the real nitty-gritty section of your credit report. You’ll want to make sure the details are right.
Take a close gaze at each account listed. Did you open this account? Does it accurately mirror your payment history? If you see a negative payment history on an account you don’t recognize, you’ll want to alert the credit bureau of the error as soon as possible, especially if you have plans to apply for a car loan or home mortgage in the coming months. You don’t want an error or the work of an identity thief spoiling your chances for such an important loan.
You may be surprised at the pure number of accounts listed in this section. Credit accounts that you opened long ago will be listed here. You may be tempted to close some of these accounts to simplify your credit file, but that’s not a great idea. Older, open, and active accounts with positive payment history actually help boost your credit score. So leave those older accounts alone.
A concluding key section of your credit report lists inquiries made to your credit history in the past two years. If a company has peeked at your credit file, the inquiry will be listed here.
Companies that access consumer credit files on a regular basis include banks, credit card companies, cell phone companies and utility companies. Potential employers and landlords may check your credit report as well.
Don’t be astonished if there are plenty of company names in the inquiries section that you don’t recognize. These are companies that want your business and they check your credit before sending you a promotional offer in the mail. Credit inquiries from businesses seeking your business won’t impact your credit score in any way. Credit inquiries from companies that you already do business with, such as banks and credit card companies, won’t affect your score either. Credit card companies in particular like to keep a close watch on their customers’ credit files.
The inquiries that will impact your credit score are the ones you initiate when you apply for a mortgage, car loan, credit card or other form of credit. When you fill out an application for credit, you give the lender permission to pull a copy of your credit report. About 10 percent of your credit score is affected by these inquiries. So study each one carefully. Did you apply for credit from a finicky lender, or was it a thief using your identity?
Be sure to review copies of your credit report from each of the three national credit reporting bureaus: TransUnion, Equifax and Experian.
Each national bureau obtains the credit data listed in its consumer credit reports separately. And some creditors may not send reports to all three credit reporting bureaus. Because of this, your credit files from the three national bureaus could be vary considerably.
Reading your credit report is not daylight reading, but it is essential for maintaining an precise credit record. So make reading your credit report from each of the national credit reporting bureaus part of your yearly financial checkup.
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