Mortgage - Credit Tips

How to Read Your Credit Report


	Each agency report is a little different, but generally they all present the following 5 categories of information: basic identification information credit account records payment history public records credit inquiries

Basic Identification Information
Credit reports identify you using a number of pieces of information. These usually include your:

name and current address
social security number
previous addresses
date of birth
driver's license number
spouse's name

Credit Account Records
The reports will also have information about all of your credit accounts. Each credit account will be listed along with identifying information about the account, such as:

date the account was opened
type of account (such as a loan or credit card)
limit on the credit account
current balance
minimum monthly payment
date the account was closed (if it is no longer active)

Payment History
In addition, each credit account will show if you have been able to pay your bills in full and on time throughout the past 5 to 7 years. Some reports include a simple statement about whether you're a good bill payer such as "always pays bills on time."

Public Records
The next part of the credit report is the public records section. This is where any bankruptcies or tax liens are listed. If you have any of these instances on your reports, you probably have troubled credit. Any instances in this section will hurt your overall credit history.

Credit Inquiries
Lastly, there will be a list of inquires that have been made by credit companies about your credit history. This allows you to see who has been asking about your credit-worthiness. Credit companies tend to look for answers to specific questions, such as, "Do you pay your bills?" and "Have you ever filed for bankruptcy?" They will use this information to help them determine how much credit, if any, they want to issue to you.