Ordering and Understanding Your Credit Report

by Angela Jefferson

Under the Fair Credit Reporting Act (FCRA), every American is entitled to a free credit report within 60 days of being denied credit, employment, insurance, or rental housing based on information that is in the report.

Effective December 2004, because of a change in congressional law, you are also entitled to a free credit report once a year. One should get into the habit of ordering and checking your credit report at least twice a year for financial planning and to check for identity theft, the fastest growing consumer crime in the United States. If you want a copy of your credit report more than once a year, you must pay a fee. Since not all creditors communicate and tell all three credit bureaus the same thing, it is important that you request your credit reports from all three.

The three major credit bureaus are:

Equifax

Website-www.Equifax.com

Address-Information Service Center

P.O. Box 740241

Atlanta, GA 30374-0241

PH-1800-685-1111

Experian (TRW)

Website-www.experian.com

Address-National Consumer Assistance Center

P.O. Box 949

Allen, TX 75013-0949

PH-1888-397-3742

Trans Union Corporation

Website-www.transunion.com

Address-Customer Disclosure Center

P.O. Box 390

Springfield, PA 19064-0390

Once you have received your free credit report from one of the above three credit reporting agencies, you will need to decipher what your lenders have reported to them.

The report is divided into four sections, identifying information, credit history, public records and inquiries.

Identifying Information Section is your name, address, SSN, etc.

Credit History Section has all of your credit accounts ever opened, leans from banks, retailers. Credit card companies and other lenders, it has account numbers when the account was opened, how much you owe and if the bill was ever paid late

Public Information Section has information this in contained in state and county court records like bankruptcies, tax leans and monetary judgments.

The Inquiries Section show when you applied for new credit. Potential lenders view numerous multiple recent inquiries on your credit report as a sign that you are overextending yourself. Inquiries stay on your credit report for up to two years.

My next article will discuss fixing errors on your credit report and obtaining and increasing your credit score.

Angela Jefferson is a Captain in the United States Army and author of "Military Investing 101: Simple and Proven Ways for Military Personnel to Save Money Now and After Military Service". She can be contacted at Jefferson@militaryinvesting101 or visit her website at www.militaryinvesting101.com

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