The Cutting Edge Corner

Your credit report is like a financial report card, it tells lenders how you’ve handled credit in the past and can impact your ability to borrow, rent, or even get a job. But reading it can be intimidating if you’re not sure what to look for. Here’s a quick guide to help you make sense of it.

1. Personal Information
At the top of your report, you’ll find basic details like your name, address, Social Security number, and employment history. Make sure everything is accurate. Mistakes here can lead to confusion with someone else’s account.

2. Credit Accounts
This section lists all your credit accounts, including credit cards, auto loans, mortgages, and personal loans. For each account, you’ll see the lender’s
name, the account number (partially masked), type of credit, date opened, current balance, credit limit or loan amount, and payment history. Look
closely for any missed or late payments, and make sure the balances are correct.

3. Credit Inquiries
When someone checks your credit, it shows up as an inquiry. There are two types: soft inquiries (like when you check your own credit) and hard inquiries (when a lender checks it for a loan or credit application). Too many hard inquiries in a short time can lower your score slightly.

4. Public Records & Collections
If you have any bankruptcies, judgments, or accounts sent to collections, they’ll be listed here. These items can seriously impact your credit, so it’s
important to make sure they’re reported accurately; or better yet, not there at all.

5. Dispute Errors
If you see something wrong—like an account that’s not yours or a late payment that you actually made on time, you have the right to dispute it
with the credit bureau. Errors are common, and fixing them can boost your score.

Tip: You’re entitled to a free credit report from each of the three major bureaus (Equifax, Experian, and TransUnion) every year at AnnualCreditReport.com. Review all three to catch any inconsistencies. If you would like some one-on-one assistance with reviewing your credit report, just reach out to Cutting Edge Credit Union. We are always more than happy to assist you with this and other financial topics.