Every credit report differs from each other but all of them contain four common sections
- identifying information;
- credit history;
- public records;
Identifying information is information needed to identify the person. It includes name, address, telephone, and other personal information. There might be mistakes in it (there are different spellings of the name, for instance) but when the user fixes them, the wrong information remains on the report. Otherwise, certain misunderstandings with previously filled in documents may arise.
People, who don’t know how to read a credit report, should understand that there is one more important option – credit history. This section contains information about the kind of the loans that a borrower had or still have, including total loan amount, how much the borrower owes, fixed monthly payments or minimum monthly amount, the status of the account, the repayment tendency, information about the creditors.
The next section is a headache for borrowers. Public records contain information about bankruptcies, judgments and tax liens. Of course, not every borrower has this sectioned filled.
Inquiries section is a list of entities, who had required a credit report.
There are basic guidelines on how to read a credit report and how every creditor sees it. There is nothing complicated in reading reports. It’s only important to understand ones how it works.