It’s important to know your credit score and keep track of it. Luckily, doing so is easy. Everyone has access to one free weekly credit report from all three bureaus: Equifax, Experian, and TransUnion.

But once you have the report in your hands, then what? There is a lot of information in a credit report to sift through. We want to help you understand your credit report, including what to look for to keep yourself financially safe.

What is a Credit Score?

Your credit score is a three-digit number ranging from 300 to 850. It sums up the information in your credit report.

Credit scores are calculated by an algorithm that uses information from your credit report, including your loan payment history and credit card balances. A credit score is intended to predict the likelihood that you make your payments on time or if you will go delinquent on your payments.

The higher your credit score, the better your credit is. While scores vary somewhat, most lenders now use the FICO range, which is as follows:

800-850: Exceptional Credit
740-799- Very Good Credit
670-739: Good Credit
580-669: Fair Credit
300-579: Poor Credit

In other words, make sure to make your payments on time and don’t carry high credit card balances. Also, don’t take out a loan you’re not 100% sure you can’t pay off. Serious defaults can significantly lower your score, sometimes by more than 100 points. 

Personal Information

When you get your report, you’ll find a collection of personal information used to identify you. This will include your name, address, social security number, date of birth, place of birth, and phone number. It may also include previous addresses.

Before moving forward, review this information. It’s ok to have different variations of your name and old address on it. But make sure they are all accurate.

Double-check the social security number to make sure it’s yours. Also, make sure all the addresses listed are places you’ve actually lived. If the report says you lived in Malibu, Florida, for four years but you’ve never even visited, you’ll want to check it up. 

Credit Summary

The credit summary section is an overview of the different types of accounts you have. The section lists your accounts, including current and delinquent ones, along with their balances.

It will include a variety of accounts, such as real estate accounts, revolving accounts like credit cards and lines of credit, installment accounts, accounts sent to collections, and any other miscellaneous accounts that don’t fall into the other categories. 

Your credit summary will also summarize the number of accounts you have open, closed, and the number of inquiries made against your credit within the past two years.

Credit History

This section will have the bulk of the information in the report. It includes details on each credit account you have opened, including the name of the creditor, your monthly payments, the highest balance on the card, payment status, payment history, and more.

Read through this section thoroughly. 

We repeat. 

Read. This. Section. Thoroughly.

Once you’re done, do it again.

Look for any discrepancies, like accounts that were opened that you don’t remember. Check for payments being noted as late that actually weren’t. Make sure credit cards and other lines of credit that you have closed are actually closed. If any of these is incorrect, it’s a huge red flag and could mean you’re at risk of identity theft.

Public Records

You want this section to be blank. The activity listed here consists primarily of bankruptcies, which may stay on your report for 7-10 years. Most tax liens and civil judgments no longer appear on credit reports. 

Credit Inquiries

This section lists everyone who has accessed your credit report within the past two years. You will see both kinds of inquiries listed: soft and hard. 

Soft inquiries are from companies that want to send you promotional materials or current creditors checking your account. They are visible to you but not to other lenders, and they don’t impact your score. 

Hard inquiries are made when you actually apply for a credit card, loan, or mortgage. These inquiries are the ones shown to lenders and can cause your credit score to drop a few points, so be sure you’ve truly given your permission for a hard inquiry to your credit. These should disappear from your report after about two years.

How to Get Your Credit Report

Three main credit bureaus are used by the majority of financial institutions and businesses to check consumers’ credit: Equifax, Experian, and TransUnion.

As of 2023, everyone can access free weekly credit reports from all three bureaus through AnnualCreditReport.com

There are a few things you will need to get that report, including:

  • Your name
  • Address
  • Social Security number
  • Date of birth

If you've moved within the last two years, you should include your previous address. To protect the security of your personal information, you may be asked a series of questions that only you would know, like your monthly mortgage payment.

If you have any questions about your credit score, we would be happy to help. Give us a call in Searcy at (501) 278-3080 or (501) 278-3085, in Augusta at (870) 347-2511, or in Beebe at (501) 491-0525.