Most people know they should check their credit report. Fewer actually do it, and even fewer know how to read your credit report once they pull one. That matters, because the information in it affects your ability to get a loan, rent an apartment, and sometimes even get a job. Knowing what you are looking at is one of the most practical things you can do for your financial health.
Where Do You Get Your Credit Report?
You are entitled to a free credit report from each of the three major bureaus: Equifax, Experian, and TransUnion. The official site is AnnualCreditReport.com. Be cautious of other sites that claim to offer free reports, because many exist to get you to sign up for a paid service.
Pull reports from all three bureaus, not just one. They can differ significantly, and errors on one report will not necessarily appear on the others.
What Are the Main Sections of a Credit Report?
Every credit report follows roughly the same structure. Here is what each section contains.
Personal Information
This section includes your name, current and past addresses, Social Security number, date of birth, and employer information. Review it carefully. A name you do not recognize, an address you have never lived at, or a Social Security number that looks incorrect can signal a mixed credit file or fraud.
Accounts
This section lists every credit account in your name, including credit cards, auto loans, student loans, mortgages, and any accounts in collections. Each entry shows the creditor name, account type, date opened, credit limit or loan amount, current balance, and payment history.
Inquiries
This section shows who has pulled your credit. Hard inquiries occur when you apply for credit and can affect your score. Soft inquiries, such as when you check your own report, do not affect your score.
Public Records
Depending on your state, this section may include bankruptcies, tax liens, or judgments.
What Should You Look for When You Read Your Credit Report?
Once you know how to read your credit report, the next step is knowing what to flag. Start with these five things:
Accounts you do not recognize. An unfamiliar account can indicate identity theft or a mixed credit file, where someone else’s information has appeared on your report.
Payment history errors. A payment marked late when you paid on time is a common error. Check each account you recognize.
Incorrect balances or account status. A debt you already paid should show a zero balance and a closed status. If it shows an open balance instead, that is an error worth disputing.
Wrong dates. If a very old debt appears with an incorrect open date, the creditor may be attempting to extend how long it stays on your report. That is a potential FCRA violation.
Unfamiliar inquiries. If a company you have never heard of pulled your credit, that is worth investigating.
What Do You Do If You Find an Error?
Under the Fair Credit Reporting Act (FCRA), you have the right to dispute errors directly with the credit bureaus. You can submit disputes online, by mail, or by phone. The bureau must investigate and respond, typically within 30 days. If the information is wrong, the bureau must correct or remove it.
However, if a dispute does not resolve the problem, especially if the error keeps reappearing or the creditor continues to report something it knows to be inaccurate, that may constitute a violation of the FCRA. In that case, you may have legal options beyond simply filing another dispute.
When Should You Talk to a Consumer Protection Attorney?
A simple dispute that resolves quickly usually does not require an attorney. But if errors keep coming back, if the bureaus or creditors are ignoring your disputes, or if the information on your report looks like it belongs to someone else entirely, legal help may make a real difference.
Bell Law handles credit report errors and FCRA violations in Missouri and Kansas. If what you are seeing on your report does not make sense, a free consultation is worth your time.
Call us at (816) 886-8206 or contact us online to schedule your free consultation.
This blog post is for informational purposes only and does not constitute legal advice. Every situation is different, and results depend on the specific facts of your case. Contact Bell Law to discuss your individual circumstances. The choice of a lawyer is an important decision and should not be based solely upon advertisements. This disclosure is required by rule of the Supreme Court of Missouri.
