Equipment Leasing Solutions

How to Read an Experian 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, any account on file with a medical entity will be displayed as “Medical Payment Data” on an Experian credit report, to protect your medical privacy. Following is a summary of the primary portions of an Experian report:

Personal Header Info

This section identifies you by your full name, a report number required to contact Experian concerning your report via phone, mail or internet, and the report date.

Potentially Negative Information

This section lists information such as bankruptcies, liens, judgments, foreclosures, or any other information that might identify you as a risk to creditors. Information given will include the name and address of the creditor, your account number, account status, the date the claim was filed and resolved, the claim amount and reports who bears responsibility for resolving any issues against the account.

Credit Items

This is a list of all of your current and previous accounts. It will include the name and address of the creditor, the date you opened the account, your account number, status, type of account, your credit limit, current balance and recent payment. It will also list what your payment terms are and your current monthly payment. An additional section entitled “credit history” will indicate whether the account has been to collections or is delinquent.

Accounts in Good Standing

As well as listing information that might make creditors wary, Equifax lists information that would impress creditors. This section lists all reported accounts with a positive status, including the creditor’s name and address, your account number, account status, the date you opened the account and its current status, recent balance and payment terms, the original credit limit and any recent payments as well as who bears responsibility for the account. Any other personal statements concerning each account are listed at the end of account information.

Requests for Credit History

This section lists inquiries concerning your credit file and is broken down into two categories:

• Requests viewed by others – This is a list of inquiries into your credit file by creditors who have your permission. These include companies to whom you have applied for credit or a home loan or any accounts sent to collections. Information listed may include the name of the inquiring company, their address, the date of inquiry and any comments.

• Requests viewed by you or others with permission – Other than yourself, this shows requests by others with permission under the Fair Credit Reporting Act. This may include offers for pre-approved lines of credit, account monitoring by current creditors, prospective employers or investment reviews. Information listed includes the name and address of the inquiring company, the date of request and any comments.

Personal Information

Unlike Equifax and TransUnion, Experian credit reports contain your personal details at the end of the report, rather than the beginning. Personal information includes your name (as well as any name variations or previous names), date of birth, phone number, social security number, current and previous addresses (with housing unit type and geographical code), current employer and any statements you have authorized Experian to make.

Personal Message from Experian

Experian concludes by informing you that any medical specific information, such as a particular clinic that may appear on your record, will be listed as “Medical Payment Data” to prevent disclosure of medicinal ailments. Medical statements posted at your request will be viewable by others.