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The three major credit reporting agencies are Equifax, Experian, and TransUnion. Each agency maintains a database of credit information on millions of consumers worldwide.

Each credit agency's report is in a different format, but they contain very similar information in four categories; personal information, credit accounts, credit inquiries, and consumer statements.

Personal Information

To be sure your credit is not mixed up with someone else's, review the personal information carefully. It may include former names, nicknames, maiden or married names, and current and previous addresses, as well as employment history.

Credit Accounts

This is the most detailed part of your report and contains the majority of the information affecting your creditworthiness. This information includes:

Creditor - the name of the company with whom you have a current or past credit relationship. Don't react too quickly if you see a name you don't recognize. These accounts will go back as far as 7 or 8 years, and some you may have forgotten. Sometimes you might not recognize credit you had with a local store because the account was actually handled by a bank such as Citibank or Household.

Reporting Date - the last time information for this account was updated. Before disputing balances, check this date. If you paid off a balance recently, it may not be reflected in your report yet.

Current Balance - the outstanding amount you owe as of the reporting date. If anything looks amiss, check your recent statements as of the reporting date above.

High Credit - for revolving accounts, such as credit cards, the most you've ever owed.

Credit Limit - the original balance of loans, or your current credit limit for revolving accounts. Note that if you have current balances close to your credit limit on revolving accounts, this is considered a negative factor in your credit score.

Payment History or Delinquencies - indicates how many times payments have been late, usually accompanied by "30," "60," "90," etc. indicating how many days late. Delinquencies have a serious negative affect on your credit rating. As much as you'd wish otherwise, these are rarely reported in error. However, if you're positive that your payment history is misrepresented, follow the agency's procedures for disputing the information.

Charge Off Amount - how much you owed when the creditor stopped trying to collect from you. This represents how much the creditor lost because of your failure to pay. This is a huge negative on your credit, and is also rarely in error unless you had a legitimate reason for not paying. If so, follow the agency's procedures for disputing the information.

Credit Inquiries

When you apply for credit, the creditor will obtain a copy of your credit report. This is noted in your credit record. A number of recent credit inquiries can have negative implications on your credit rating suggesting you may be in a financial bind or trying to expand your credit too aggressively.

Inquiries from creditors you don't recognize might mean someone is trying to gain credit in your name. However, many companies will obtain your credit report to decide if they want to send you unsolicited offers. These benign inquiries are shown separately. You may not recognize their names, but these types of inquiries also don't have any affect on your credit rating so don't be concerned.

Consumer Statements

If you have any dispute with the information in your report, contact the credit agency first. They have specific procedures for correcting any erroneous information. If the record stands but you feel there were extenuating circumstances involved, you are allowed to place a statement in your credit report explaining the situation.

Learn more about this author, Steve Holder.
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