Finance Wanted.

By Ann Richter

In these days of identity theft, checking out your credit report is a good idea in order to make sure that everything on it is correct. However, once you have your copy in hand, you may be a bit puzzled as to how to decipher all those strange-looking abbreviations and numbers listed on the paper. Take heart - very few people understand how to read a credit report, especially if they are examining one for the very first time. All you need is a simple explanation of the wordage contained to intelligently zip through this information.

What's In My Credit Report?

You first need to be aware of how a credit report is laid out. These reports normally are divided into four segments of information. These are:

• Personal Information that identifies you, like your name and Social Security number, the date you were born, present and past addresses, phone number(s), who you work for, and the same information about your spouse.
• Public Information lists the data that has to do with your financial history which is available via public record. If you have filed for bankruptcy, had a tax lien, or any sort of monetary judgment against you, it will be listed in this section.
• Credit History Information is a listing of all the different accounts you have, such as with utility companies, retailers, banks, credit card companies, and other lenders.
• The Inquiries section is a list of anyone who may have asked to view your credit report. Inquiries are usually divided into two separate sections, hard and soft.

Most of this information is simple to understand. It's when you start to read the Credit History information that you may wind up with a headache! You'll see the following entries for each account that you may have:

• The date that you opened the account
• What type of credit (department store, car loan, student loan)
• Whose name the account is in
• Loan amount or credit limit
• The total amount you owe on the account
• The minimum monthly payment or fixed payment amount
• Whether the account is open, closed, inactive, or paid
• Your payment history - late, always on time, etc

Now comes the part that makes most people feel like screaming - all those codes! But, you'll never have to wonder what they mean again.

J - Joint

I - Individual

U - Undesignated

A - Authorized User

T - Terminated

M - Maker

C - Co-signor

B - On behalf of someone else

S - Shared

O - Open - the entire balance is due monthly

R - Revolving - Each month's payment amount can be different

I - Installment - The same amount is due each month

0- Approved account, but not yet used

1 - Paid as per agreement

2 - 30 days or more past due

3 - 60 days or more past due

4 - 90 days or more past due

5 - 120 days past due or sent for collection

7 - Making payments as per a special arrangement

8 - Repossession

9 - Charged off

Once you know how to read a credit report, it is simple to check it for mistakes in order to keep your credit standing in good shape.

For more helpful tips on getting free credit rating try visiting http://www.creditreportguideonline.com, a popular credit report website that provides tips, advice and helpful resources including information on how to get a free FICO score.