Knowing Your Credit Report

Knowing your credit report backwards and forwards should be one of your primary money management goals. Not only can it be accessed to qualify you for a credit transaction, but it can also be viewed for employment purposes, to underwrite insurance on your behalf, for a legitimate business need, or in response to a court order or federal subpoena. Simply put, your credit report is a history of your financial integrity.

So what exactly is in this all-important document? For starters, it includes identifying information: Your full name with generation, address for the past 5 years, your spouse's name, your social security number, your year of birth, and your record of employment.

Also, your account information is fully disclosed. You will see the limits on all of your accounts, high balances, current balances, payment patterns, opening dates, and dates of your last payment on each active account.

Public record information also appear, such as liens, financial judgments, and bankruptcies.

External inquiries are shown as well. These are instances in which you applied for credit, applied for a mortgage, rented an apartment, and applied for insurance.

In addition, internal inquiries may be initiated by current lenders to monitor your account, potential lenders to offer pre-approved credit, employers to hire the best candidate, and credit bureaus to provide your report.

If, after reviewing the report carefully (do this annually at a minimum), you find even a minor discrepancy, may dispute it by following the instructions provided by each database: Equifax , Experian , and Trans Union (SARMA) . Keep in mind that the dispute process may take up to 30 days.

Information stays in your report for several years, depending on its nature. For instance, good credit will remain in your report for 10 years. Bad credit will remain for 7 years. Bankruptcies are there for 10 years.

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