Once I’ve got my credit report, how do I interpret it?
Obtaining your credit report is the easy part, but it is interpreting it that can be a challenge. You have to be able to interpret it in order to determine what it is you need to do to make your credit better.
There are several sections to your credit report. One section has your personal information. This is the information that is reported by your creditors. They get this information from you when you fill out their credit applications. You can check this to make sure it is correct, which it should be. If not, you can write to the credit bureaus and provide them with supporting documentation to have your personal information updated. However, it is very rare that this information is incorrect.
You’ll also notice a list of enquiries. These are “hits� by creditors. This is when they look at your credit report, but they have not approved you for credit. These enquiries remain for 5 years, so you are looking at 5 years worth of enquiries when you take a look at your credit report.
Next, you’ll notice there is a list of your current credit accounts. These are the accounts in which you are making on time payments. You’ll notice that there are “ticks� that indicate the payment was made on time. If there has ever been a late payment that has exceeded 60 days, you’ll notice that that is indicated as well.
You’ll also notice that there is a listing of accounts that are in default, if you have any of these accounts. You’ll also see the payment history indicated here as well. Many individuals will see that their payment history indicates on time payments, and then all of a sudden the payments are late.
If you have any bankruptcy information, judgments, or other public information, you’ll notice that there is a section for that as well.
If you have not yet acquired a copy of your credit report, contact Veda Advantage at www.mycreditfile.com/au and Duns and Bradstreet at http://dnb.com.au/Credit_Reporting/Order_my_consumer_report/index.aspx
When looking at your report, if you see that there is something incorrect on one of your accounts, contact the creditor. Let them know what you see and they will look into it. You should see the change within 5 working days of the day they report the changes to the credit bureaus.
All-in-all, the credit report is not so hard to decipher once you know what the sections are and what they mean. This will help you to effectively manage your credit for the rest of your life. Being that it is your pass to obtaining new credit, getting jobs, renting apartments, and so much more, it is important that you know how to read it.
Other Question Categories
|
Credit Card Comparison