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How to Read an Equifax Credit Report

Credit reports are a way to review the financial history of an individual, particularly by companies from whom they are attempting to borrow. As a consumer, you should remain informed on what your credit reports say. To help you, the Fair Credit Reporting Act requires the three National Consumer Reporting organizations, Equifax, Experian and TransUnion, to provide you with one free credit report every twelve months.

These three credit reports vary slightly, and understanding how to read them is important. For example, Equifax contains information on previous employers that future potential employers may find helpful. Following is a summary of the primary portions of an Equifax report:

Personal Information

This section lists basic personal details, including your name, Social Security Number (SSN), birthday, previous names, current and previous addresses and other forms of identification. The section includes your current employer and title, employment history and any fraud alerts.

Account Information

This section lists all of the accounts you have on file. Information included with the accounts is the account type, your account number, the date you opened the account, your current balance and how much is past due on the account, its current status and your credit limit on the account.

Inquiries

This section lists inquiries into your credit, which come in two categories:

• Inquiries by other companies which may affect your score – This includes potential creditors to which you have applied for a line of credit, mortgage loans, etc. Company names and the date of inquiry will be listed, and your score is only slightly affected.

• Inquiries that do not affect your credit score – These inquiries do not affect your credit score, and may include inquiries by companies seeking to offer a pre-approved line of credit, review by current creditors or yourself, etc. Lists the company name and date of inquiry.

Collections

This section lists your accounts that have been sent to collections, providing the creditor, creditor type, the date reported, your account number, original amount owed, date the account turned delinquent, your outstanding balance and current status information.

Public Records

This section lists any bankruptcies, liens or judgments on your record from federal, state or county courts. Information listed includes the type of record, case number, amount of money defaulted and any other pertinent information.

Statements

This last portion proclaims any statements you have requested Equifax to post at the end of the report. Example statements include requests for companies to call you before checking your credit, or to report whether you are a victim of identity theft.