How To Read A Credit Report Score
So when you read your credit report, you have to know what to look for.
Where to begin? For starters, your credit score is based on five key financial criteria. These are the "five keys" to reading - and understanding - your credit report.
Payment History: About 35% of your credit score is based on your bill payment history.
Amounts Owed: About 30% of your score is based on the amount of money you currently owe.
Length of Credit History: About 15% of your score is based on how long you've had credit.
How Much Credit? About 10% of your score is based on new credit activity or recent applications for credit.
Types of Credit: About 10% of your score is based on the kinds of credit you have, i.e., auto loans, mortgage loans, credit card accounts, school loans and the like.
Check everything in the report carefully. It's entirely possible, and not all that uncommon, for banks and credit companies to make a mistake. If you spot any accounts that you don't recognize, dates that don't seem to match up, and especially if you see any mention of late payments or penalties, make certain they have been recorded correctly - and don't be afraid to call the company in question for details. Far better to spend a few minutes on the phone clearing something up, than leave a mistake on the report that could adversely affect your credit record. If you're an otherwise reliable customer with one or two late payments in your history, you may ask the lender to remove that from your record, as a goodwill gesture. (Though you should note that closing an account on which you've made late payments in the past does not remove that account from your records ... all the more reason to be careful from now on!).
What won't you find on your credit report? Things like your income and bank balance, the interest rates you pay on other loans, your occupation, job title, employer, time with your company, and employment history do not count on your credit score.
Getting your credit report is a cinch. To take advantage of your one free annual credit report, visit www.annualcreditreport.com or call 1-877-322-8228. Keep in mind that these reports do not include a free credit score. If you want to know your scores, you'll need to purchase them. If you've already ordered your free credit report for this year, it's still a good idea to check your report periodically to make sure the information is accurate and to detect any issues that may damage your credit rating - identity theft or inaccuracies, for example.
And remember, there are three major consumer reporting agencies - Equifax, Experian and TransUnion - make sure to obtain a report from each one as the information from bureau to bureau can vary.
Reading your credit report and knowing it from the inside out isn`t difficult, but it is necessary. So get your report, pour yourself a cup of coffee, and dig in.
It might be the most rewarding read of your financial life.
Question: Does my spouse's information appear on my credit report?
Answer: In most cases, your credit report will contain only your credit and loan accounts, even after you get married. The exception is joint accounts shared between you and your spouse. In those cases, the account history will be reported on both your and your spouse's credit report, regardless of who uses the account and who pays the bill. Similary, if one spouse is an authorized user on the other spouse's account or one spouse co-signs another's account, the account history will be reported on both credit reports.