{"id":11714,"date":"2024-06-07T13:39:25","date_gmt":"2024-06-07T20:39:25","guid":{"rendered":"https:\/\/www.soundcu.com\/?p=11714"},"modified":"2025-10-15T15:35:16","modified_gmt":"2025-10-15T22:35:16","slug":"how-to-read-a-credit-report","status":"publish","type":"post","link":"https:\/\/www.soundcu.com\/blog\/how-to-read-a-credit-report\/","title":{"rendered":"How to Read a Credit Report"},"content":{"rendered":"
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How to Read a Credit Report<\/strong><\/h2>\n

If you don’t know how to read a credit report or don\u2019t know your credit score, raise your hand. First, the good news: you’re not alone. According to a recent study from BadCredit.org, more than 30% of Americans<\/a> have no idea what their credit score is. Next, the not so good news: being in the dark about your credit history can have serious financial ramifications, as errors on your credit report could be lowering your credit score or worse, you could be a victim of identity theft and not even realize it. For details on how \u2014 and why \u2014 you should review your credit report regularly, read on.<\/p>\n

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A Little Number That\u2019s A Big Deal<\/strong><\/h3>\n

Your credit score\u2026it\u2019s more than just a number. \u201cAll kinds of decisions are made about you based on your credit score,\u201d says Lisa Gill, an expert in credit scores and reports for Consumer Reports<\/em>. \u201cSome of them are obvious, like if you apply for a credit card, or you want to get a loan for a car, or a loan to buy a house, or even a loan to go to school, or a personal loan<\/a> for any reason.\u201d<\/p>\n

Beyond that though, your credit score is used for a number of other things, including getting a company to supply you with utilities, helping a landlord decide whether he or she will rent to you, or even whether or not an employer hires you. It can even affect how much you pay for things like homeowners or car insurance.<\/p>\n

Your credit score will range from 300 to 850. The higher the score the better, as it will give you more access to various credit products, as well as lower interest rates. For the purposes of this story we\u2019ll be sticking to how to read a credit report. If you want details on how your credit score is calculated, click here<\/a>.<\/p>\n

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How To Get Your Credit Report<\/strong><\/h3>\n

Getting your credit report is actually very easy and not to mention, free. First, you\u2019ll want to go to AnnualCreditReport.com<\/a>. Note\u2013there are many sites that will try and get you to pay for your credit report. Do not do that\u2026I repeat, do not do that. AnnualCreditReport.com<\/a> is the only source for free credit reports and is authorized by federal law. On the site, you can access reports from three of the largest credit bureaus in the U.S., including Equifax, Experian and Transunion, once per-week at no cost.<\/p>\n

While on the site, you\u2019ll be asked to follow the below steps:<\/p>\n

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  1. Fill out a form with your personal information. Note, you will have to enter your Social Security Number.<\/li>\n
  2. Select which reports you want (it\u2019s recommended you get all three: Equifax, Experian or TransUnion)<\/li>\n
  3. Answer a few more security questions for each credit report. These questions are meant to be more difficult, and you may even need to access your records to answer them. Gill says she\u2019s talked to a lot of people who have had issues answering the questions, because again, they\u2019re tougher than average security questions. If you run into trouble, you can call each of the companies and have reports mailed to you.<\/li>\n
  4. You\u2019ll then have access to your reports. From there you can save or print them to review later<\/li>\n<\/ol>\n

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    You\u2019ve Got Your Reports\u2026Now What?<\/strong><\/h3>\n

    Now that you have your reports, you\u2019ll need to sit down and take your time reviewing them for accuracy. \u201cSome incorrect information can have a negative impact on your credit rating or could be linked to serious matters like identity theft,\u201d warns Bruce McClary of the National Foundation for Credit Counseling.<\/p>\n

    As you review, pay special attention to the following:<\/p>\n

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    1. First, make sure your full name and your Social Security Number are all correct. Then, review the addresses listed for accuracy. Note, every address where you lived does not need to be listed. Make sure though there aren\u2019t any addresses that just don\u2019t make sense\u2013if so, it could be a case of someone trying to sign up for a credit card using your name and having it sent to their address.<\/li>\n
    2. Next, look at the list of bank accounts and credit cards<\/a> and make sure everything is correct. Review your list of loans and make sure those listed are yours. Also, keep an eye out for any mentions of late payments that aren\u2019t accurate. Gill says reviewing this section is extra important. \u201cIt will be flagged if you\u2019ve missed a payment or you\u2019re one day late outside of that 30 day window,\u201d she says. \u201cMake sure it\u2019s correct, because that stuff really dings the credit score.\u201d<\/li>\n
    3. Look to see if there is anything in collections\u2013for example, it might be an old utility bill from an apartment you lived in 10 years ago that you forgot about. It doesn\u2019t matter whether the bill is $25 or $2,500, having it in collections can really drag your credit score down. If you see something in collections that you don\u2019t recognize, you will be able to view the name of the collections agency and contact them for more information. When you reach out, Gill says to remember to ask for the debt to be \u201cvalidated.\u201d This will buy you 30 days to sort things out.<\/li>\n<\/ol>\n

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      What To Do If You Find An Error<\/strong><\/h3>\n

      Going through your credit report, you might find inaccuracies. For example, it could say you were a day late making a payment, when in actuality, you weren\u2019t. If you find yourself in this position, follow these steps:<\/p>\n

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      1. Prepare a letter, addressed to the credit bureaus where the error appears explaining the situation. You\u2019ll also want to make copies of supporting documentation, for example, a copy of your checking account statement showing a payment coming out (make sure any sensitive information is blacked out, though). Then, send the letters and supporting documentation by registered mail. Once they\u2019ve been delivered, the credit bureaus will have 30 days to respond (but will typically get back to you within 10).<\/li>\n
      2. If they respond and say they aren\u2019t correcting the error on your report, you can try again. If you get to this point, Gill advises trying to find different evidence and preparing a new letter.<\/li>\n
      3. If a second letter and additional supporting documentation doesn\u2019t work, you\u2019ll have to take it to the next level. \u201cYour next step is to go to the Consumer Financial Protection Bureau<\/a> (CFPB), which is a government agency that takes consumer complaints,\u201d Gill says. With the CFPB, you can make your complaint online and they have 30 days to respond.<\/li>\n
      4. If the CFPB cannot resolve the issue, and you still feel you\u2019re right, you have the right to sue under federal law. According to Gill, there are a large number of attorneys who specialize in this and it\u2019s not as expensive as you might think. \u201cIf you have a legitimate claim and it’s ruled in your favor, the company will actually have to cover your legal costs,\u201d she adds.<\/li>\n<\/ol>\n

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        The Bottom Line<\/strong><\/h3>\n

        Now that you know how to read a credit report, experts say you should make it a regular part of your financial wellness routine. \u201cOnce a month is recommended as a standard practice, mostly because it allows you the opportunity to react quickly to any errors that may appear,\u201d says McClary. \u201cFast action is critical in situations where someone else is using your personal information to open or access lines of credit.\u201d<\/p>\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\n\t<\/div>\n<\/div>\n\n\n

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        \"Tammie<\/div>\t\t\t\t
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        Tammie Atoigue<\/h3>
        Vice President of Consumer Lending<\/div>

        Tammie Atoigue<\/strong> is the Vice President of Consumer Lending at Sound Credit Union, where she utilizes her extensive experience to empower members in achieving their financial goals. She is passionate about member education, particularly around credit and smart borrowing, and frequently participates in industry speaking engagements to share her insights.<\/p>\n<\/div>\t\t\t\t\t\t

        \n\t\t\t\t\t\t\tConnect<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/svg>\n\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":10,"featured_media":11051,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","_searchwp_excluded":"","footnotes":""},"categories":[50],"tags":[110,62,162],"class_list":["post-11714","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-life-finances","tag-budgeting","tag-credit","tag-financial-education"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.soundcu.com\/wp-json\/wp\/v2\/posts\/11714","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.soundcu.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.soundcu.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.soundcu.com\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.soundcu.com\/wp-json\/wp\/v2\/comments?post=11714"}],"version-history":[{"count":8,"href":"https:\/\/www.soundcu.com\/wp-json\/wp\/v2\/posts\/11714\/revisions"}],"predecessor-version":[{"id":17157,"href":"https:\/\/www.soundcu.com\/wp-json\/wp\/v2\/posts\/11714\/revisions\/17157"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.soundcu.com\/wp-json\/wp\/v2\/media\/11051"}],"wp:attachment":[{"href":"https:\/\/www.soundcu.com\/wp-json\/wp\/v2\/media?parent=11714"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.soundcu.com\/wp-json\/wp\/v2\/categories?post=11714"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.soundcu.com\/wp-json\/wp\/v2\/tags?post=11714"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}