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5 Things that you should analyze on your credit report

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By: Anna Sweeting
on 13th Jul,2015

Once you get hold of your credit report, you need to check certain things carefully.
5 Things that you should analyze on your credit report

You must be aware that, as per the new rule, you're entitled to free copies of your credit reports if your application for any kind of loan gets rejected. Apart from that, Federal law gives you the right to request your three credit reports, one from each of the three major credit reporting agencies every year. Once you get hold of your credit report, you need to check certain things carefully.

Here are 5 items which you should review in your credit report so that you can understand your credit situation:

1. Hard inquiries on credit report: Once you check your credit report, you will come to know who else has viewed your credit report in the recent past. Hard inquiries are done when you've applied for a new credit and asked a lender to check your history. Such inquiries can affect your score and no one is permitted to do so without your permission. Many a times, you can stop identity theft if you timely check and see if anyone's been using your information

2. Bankruptcy, judgments and liens: If you file a bankruptcy or there is a lien on your property, it is quite sure that you will remember about it. However, if you've victim of identity theft unknowingly, then someone else's bankruptcy or judgment will be listed in your credit report. It can be same in case of a debt collector who may have tagged you with someone else's debt. Many a times, you may find that they have taken actions against you without proper notification. Such items will be listed in the "public records" section of your credit report. Make sure that you check that section properly to avoid such discrepancies.

3. Late payments on your credit report: Late payments have a severe negative impact on the credit score. Constant notations of bills that have been paid 30, 60, 90 or 120 days late will have a damaging affect on your credit. But old listing of such items won't have much impact on your scores. So, make sure that you check whether or not your creditor/lender has reported any late payments.

4. Collection activities: It is quite natural that you will have the information regarding your collection activities. But sometimes, you may find that your credit report is listing collection activity on an account which is not yours. In such cases, you should dispute it and get rid of it. If you owe the debt, it's better to pay it off.

5. Closed active accounts: You had a store card some years back which you closed down 6 months ago. If you check your credit report now, then it should show that the account has been closed as enough time has elapsed. Checking your credit report will help you find out whether or not the account has been closed by them. If you find that the account has not been closed, then you need to contact the credit card issuer and sort out the matter.

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