Your credit report lists consumer information. This term represents a wide range of information about you and how you manage your credit. As you consider applying for a new loan or buying a home, you need to be sure that everything listed on your credit report, including all of this consumer information, is accurate.

Personal Information

Your credit report will detail your personal information. The good news is this does not include as much personal information as you think. The only information listed here is what the credit bureau has received from reporting lenders. The most common information listed under your personal information could be:

• Your Social Security number
• Your full name, as well as any other names you go by
• Your date of birth
• Your current address
• Any known past addresses you have
• Your current employer
• Any past employer information about you

Remember, only information reported about you by lenders is included here. If you opened a line of credit under a maiden name or changed your name in any way, that information could be included. If you used a shortened version of your name, a middle initial, or an error in the spelling of your name happened at some point, that could be listed here as well.

Verify this information is accurate. If you see anything that is very out of line or inaccurate, you'll want to report that to the credit bureau to have it removed. This is especially true if they show an address that is not yours, which could indicate identity theft.

Credit Accounts

Your credit report also lists your credit accounts. This includes all of the accounts lenders are reporting that you have or have had in the past. There could be some very old accounts here. It is okay to have accounts listed that are no longer open. Often this is a good thing. The first credit card accounts you open help establish your credit history. The longer that is, the better. Don't close old accounts, as they can be removed from your credit report, shortening your credit history.

The credit accounts section will list the following:

• The name of the lenders who have offered you credit
• The current account balances and credit limits you have
• The type of account it is (secured, unsecured)
• Whether or not you are current on your accounts
• The payment history you have had over the previous two years
• The date the account was opened
• The highest balance you've had on that account.

Verify the accuracy of all information here as well. However, it can take 30 or more days for the most recent payments to update. If you see a late payment or an account that is not yours or is inaccurate in some way, you can dispute that information with the credit bureau. If you see any account that is not yours, you'll want to investigate what it is, especially if it has a balance.

Payment History

Your payment history is an essential component of your credit report. Under each account will be a series of marks, one for each month going back for the last two years. That block is usually green or positively checked if you make timely payments. If you fall behind on payments, that is noted with a number such as (30) or (60) or with a red block. The number indicates how many days behind you are with the account.

For example, let's say you forgot to pay for a credit card for two months last year. It will be noted that you were 60 days late if that is what the lender reported. Ideally, you'll want your credit history to show that you make payments on time every month, which means lenders can also be confident you'll make future payments on time.

Public Records

Public records are any legal notifications that you have had action taken against you, and they can include both collection items and any judgments ruled against you. These significantly impact your credit score, so you will want to ensure this information is accurate.

Collection items may be reported by a collection agency, but they will be listed differently from the account that opened the loan with you. Not all collection accounts are reported on your credit report.

Public records could include:

• Bankruptcies
• Judgments against you made by the court
• Foreclosures
• Wage garnishments
• Liens against your property

Credit Inquiries

Credit inquiries are listed on your credit report as well. There are two forms:

• Soft credit inquiries: A lender is considering lending to you, so they pull a soft credit history. This does not impact your score.
• Hard credit inquiries: You apply for a loan with a lender. They draw a hard credit inquiry to analyze your account to determine if you qualify for a loan. This will remain on your credit history for two years and can negatively affect you if you have too many.

Credit Scores

Your credit report does not include a credit score; lenders turn to third-party agencies for that information. Your credit score is a numerical figure representing all of this information on your report – if you make payments on time, how many inquiries you have, and so on.

The higher your credit score, the more positive information is on your credit report indicating you are a low-risk borrower. If you have several harmful components on your credit report, that can mean that you have trouble managing your finances, creating a higher risk for the lender.

Your credit score will change often, and it will vary for many reasons, such as paying down debt, making significant credit card purchases, and applying for loans. Checking your credit report each year is critical, and while you should also keep an eye on your credit score, you should ensure the information reported on your credit report is accurate from the start.