Your credit report is a valuable tool that you need to monitor on an ongoing basis. As you take the time to consider all the tools you use to manage your financial life, like your budget and credit cards, know that this one file can help or limit you in the future. The key is learning how to review and manage your credit file.

Credit Report Overview

Your credit report contains a list of all the banks and other organizations that have lent you money or have inquired about your financial health. The information on your credit report comes from lenders, and though most of them are reliable, there are some situations where errors can occur. Those mistakes can be costly to you. That's why it is so essential for you to have the most up-to-date information on your credit report.

What's Included in Your Credit Report

Your credit report will include a great deal of information about all the accounts you have or have had in the past. This includes:

• Your name and identifying information.
• A list of all your accounts, past and present.
• Your payment history on those accounts, including if you missed or made a payment late.
• Your credit limit or the maximum amount you borrowed from the creditor.
• The type of credit it is, such as an installment loan or a mortgage
• A list of companies requesting information about your credit in a list called an inquiry.
• Credit discharges, like bankruptcy, as well as any judgments against you.

Obtaining Your Credit Report

To obtain a free copy of your credit report, visit AnnualCreditReport.com. It is the only government-backed website to use. You can get a free copy of your credit reports every 12 months.

When you visit the site, input your personal information to verify your identity. You will then be able to choose to see one or all three of your credit reports. Once you do this, you should see your file online.

Reading Each Section of Your Credit Report

With this information, scan through your report and look at each section. You'll want to spot any information that is not accurate.

• Header and Identification: At the top of the file is your information, including your Social Security number, your name (and any misspellings of your name reported by the lenders), your address, old addresses you are known for, and the name of your employers. Verify that this information is correct.
• Public Record Data: The next section will contain any public records that are related to your credit report. This includes any tax liens, judgments, or bankruptcies filed against you that are noted in the public record.
• Collections Accounts: You'll see a section that lists any accounts that may be in collections, which means you have not made payments on time or as agreed to with the lender. Look to be sure these accounts are accurate, the amount due, and the account status.
• Credit Accounts: The next step is to verify all of the credit accounts listed. You'll likely have options listed here, including mortgages, car loans, and credit cards. It should list all your accounts, even those closed in good standing. It should list the amount you owe and your payment history for each one of these accounts. Keep in mind that the data could be 1 to 2 months behind. It should also list any information about the account, including if you've closed it or why it was closed if so.
• Inquiries: A list of inquiries is also provided. This is a list of businesses that have created a hard inquiry on your credit report, meaning they requested your private information to determine your credit history.

Finding and Disputing Errors

After making notations of what is accurate and inaccurate on your credit report, you can move forward with disputing errors.

If you see information that is not accurate, you will want to report that as such. Follow the steps provided by the website to dispute information. You will be taken to the credit bureau's website, where you can verify the information provided and then request a dispute.

This means that the credit bureau will contact the lender and require the lender to provide proof that the information is accurate. They have to do this within 30 days.

You can also file a dispute with the credit bureaus over the phone. To do that, call:

• Transunion: 800-916-8800
• Experian: 888-397-3742
• Equifax: 866-349-5191

The credit bureaus will then determine if there is evidence to remove or maintain the information. Remember that the credit bureau must notify anyone who received your credit report in the last six months if they are removing negative information from the account.

Protecting Your Credit from Fraud and Identity Theft

You don't want other people to gain access to the information on your credit report, and you have the right to limit access to it. If you do not wish to risk fraud or identity theft, put a freeze on your credit report, meaning lenders must get your permission before accessing this information.

Keep your Social Security information secure and private. You also will want to contact the FTC if you suspect someone is using your identity in any way.