How to make sense of your credit report


Purchase, Buy, History, Bank, Credit, Report

Breaking down this important record — how to read it, how to fix it

It’s important to check your credit regularly when you are trying to build quality credit and avoid identity theft. There are three nationwide credit agencies: Experian, Equifax, and TransUnion that can provide a free credit report once every 12 months. It’s not always the easiest thing to decipher a credit report and know what to look for.
Here are some tips.

Credit report vs. credit score — what’s the difference?  

Your credit report has more information and is more in-depth than just your credit score. (Your score is not included in the free report, but can be authorized by federal law for a free.)
The credit report is a detailed listing of all your debts and payments going back through your entire payment history. According to Kevin Gallegos, vice president of Phoenix operations for Freedom Financial Network, “For each credit account you have, the report shows creditors’ names, the amount owed, the highest balance owed, available credit, whether the account is open or closed (and who closed it), the number of times a payment was past due and whether the account is in default.”

The five sections of your credit report include: 

  • Identifying information. This is where you’ll find your name, address, date of birth, Social Security number and aliases. It may be a good idea to review this information, because you may end up getting charged for debts that do not belong to you.
  • Creditor information. This section is usually the longest and contains all of your information such as; how much you owe, who you owe, current or past due debts, whether it is opened or closed, and other status information. It’s imperative to make sure that this information is correct.
  • Collection accounts. This section lists any and all accounts that are in collection. Make sure this information and is accurate, and if you do have debts try to pay them off as soon as possible. Once the debts are paid, be sure to ask the credit bureaus explaining that the debt is paid off.
  • Public records. Information regarding bankruptcy judgments, liens, and overdue child support will be displayed here. Review for accuracy as bankruptcy and financial problems can remain for 7-10 years.
  • Inquiry section. This section is a list of businesses that have reviewed your credit information. If there are unfamiliar names checking out your credit, it would be best to contact them and find out why.

In the majority of cases the credit score ordered will be your FICO score which is named for the company that developed it in 1989. Each agency has its own way of calculating the credit score so your FICO score can vary depending on the credit bureau that provides the score. The exact formula for determining a FICO score is classified, but FICO does disclose some basics that can impact your score. For example:
  • Payment history. Any late payments – credit card, car loans, or mortgages will cause a negative impact to the FICO score. On-time paid bills will increase the score. 35% of a FICO score is applied here.
·         Amounts owed. If there is a history of small balances and payments made on time, your score will improve. If there are high percentages of credit owed, it will likely harm your score. This category accounts for 30% of a FICO score.
·         Length of credit history. This accounts for 15% of your score and it determines how long your credit accounts have existed and how long since you have utilized some of the accounts.
·         Types of credit used. This is worth 10% of your FICO score and looks at a mixture of a number of loans, including mortgage, revolving, installment, and consumer finance. Having different types of credit is beneficial for your score.
  • New credit. The last 10% of your FICO score is determined by how many new credit accounts are opened up in what period of time. The shorter period of time with more accounts, the more it hurts your credit score overall.
The percentages for each category should be able to assist consumers in determining what areas are most impactful to their credit score.

What if there is an error on my credit score?

If there is a problem with your credit score, call the credit bureau that provided the report and state your case. The bureau is required to make fixes within 30 days or the line of credit must be halted until the problem is fixed. Be sure to plan accordingly and pay off any and all revolving debt!



Clearwater Debt Collection Attorney


Marcadis Singer, PA

Florida Collection Attorney

5104 South Westshore Blvd.

Tampa, Florida 33611
info @ marcadislaw.com

(888) 547-1881

(813) 288-1881

New Clients 

Ext. 247 Gil Singer

Ext. 240 Ralph Marcadis
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