equifax credit report

equifax credit report

Understanding Your Equifax Credit Report

1. Introduction

You have many different credit reports and credit scores. Equifax is a credit reporting agency that collects and organizes information about you and your credit history from public records and creditors. All creditors report to the credit bureaus, but they are not required to report to all three and they are not required to report it at all. Equifax compiles your credit history in a report that is specific to you. This report is called your Equifax credit report. This is the central topic of this essay. Information on how to interpret and understand this report, as well as suggestions on how to improve your credit rating based on information from this report will be discussed in great detail. Note that Experian and TransUnion also provide credit reports specific to you. It is important to consider these other reports as well because your credit will undoubtedly be checked on these reports as long as you maintain an active credit file. It is wise to think of your credit report sort of like a report card of your credit history. Information from the report card is used to develop a profile on you and that profile is used to make assumptions about your character. This likeability of the profile is what will determine your success in using credit to accomplish your financial goals. So, it is very important to understand the information that is on your credit report and take the necessary steps to assure the information is positive. A positive profile will help in achieving lower interest rates on loans and will save you money in the long run. Information on what constitutes your credit score and the factors used to calculate your credit score are included in this report. Consider this essay as the first step a series of steps to a better understanding of how credit works and the role credit will play in your life. Understanding these steps is crucial in achieving long-term success with credit.

2. Key Components of Your Equifax Credit Report

Equifax credit report is designed to provide crucial information about a consumer’s credit worthiness. The report is used by credit grantors to make a wide array of decisions such as credit limits, interest rates, terms and conditions, etc. Most people will have two types of information on their credit report: credit account information and public record information. The credit account information is fairly straightforward and typically consists of information about specific credit accounts. Public record information consists of various types of information about you that is collected by local, state, and federal governments. This information can be very powerful and sometimes can even be reported inaccurately – resulting in you paying higher interest rates or missing out on job opportunities. High credit limits on your revolving account can also penalize you. Credit grantors fear you will borrow up to your limit and be unable to repay what you owe. Only experience can teach you how credit can work for you and also against you. By and large, it is much cheaper to use credit than to misuse it. And there is a happy medium between not using credit at all and getting bogged down in its excess.

3. Interpreting Your Credit Score

Your credit score is a 3-digit snapshot of your credit history at one time limit. It’s primarily based on your credit information and is an important instrument that lenders use to determine your creditworthiness. Your credit score rating is individual to you, there isn’t a world rating, which means everyone’s rating is totally different. In other words, to find your credit score you wouldn’t request it from the credit bureaus, instead you would need to go to a lender that uses that particular credit bureau’s score to check your credit. When searching for a big loan like a mortgage, chances are the lender will pull all three of your credit scores and go with the middle score. Lenders may also review your credit report to see what may be affecting your credit rating whether it’s good or bad. Credit scores affect whether or not you will get approved for credit, and can be a financial tipping point in getting a favorable interest rate. It’s often recommended that consumers regularly monitor their credit scores, and the educational nature behind credit scores and what they mean can be very lacking. Knowing what your credit score means can translate into understanding what actions are impacting the score, as well as what actions aren’t going to be worth it. Understanding what’s affecting your credit score is essential information, and it can be found in your credit report from credit bureaus. Your credit score is divided into 5 subcategories: very poor, fair, good, very good, and excellent. Each of the subcategories has a range of scores, and the higher the score will increase the chance of getting approved for a loan as well as the interest rate.

4. Identifying and Resolving Errors on Your Credit Report

If the error still is not resolved to your satisfaction, you have the right to add a consumer statement to your report, giving your version of the dispute.

If your concern has not been resolved to your satisfaction, submit a statement of 100 words or less explaining your side of the dispute. This statement will appear on your credit report, and future creditors will have access to it when viewing your report.

Keep records of all communications between you and Equifax (letters, dates, etc.) and copies of all documents submitted.

Do not contact the creditors or lenders. Send all of your documentation and correspondence via certified mail, return receipt requested. This will act as evidence that the correspondence was transmitted, and the returned receipt will document when the letter was received.

If society, place of employment, or the lender that provided the information to Equifax is unable to confirm or correct indefinite information, it will be deleted. You will not be advised of what was deleted; however, you have the right to request a recently revised credit report. Send in a revised copy of your credit report if necessary. This will assist in expediting the procedure, as it will supply complete data to identify and correct any inaccuracies stored on your file. Be sure to send all supporting documentation and clearly explain your concerns in the corresponding section, including a copy of the report with the items in question circled.

Write directly to Equifax and explain your concern. Equifax will have a customer service representative investigate the matter and normally get back to you within 30 days. Should it be decided that there was an error, it will be corrected. If the information was correct, it will remain on your report.

Your credit report has a lot of information, and it needs to be accurate for you. Once you have obtained your Equifax credit report, review it carefully. If you recognize an error, use the following steps to appeal to Equifax. Often, the concern can be resolved in a timely manner.

5. Taking Action to Improve Your Credit

For the “Spend less, save more” section, create short-term and long-term goals. Example: Short-term goal: Eat out 1 less day each week. Long-term goal: In 6 months, dine out only 1 time each month, saving $50 each month. This example will ultimately lead to the achievement of spending less and saving more because the saved money can be used to pay off debt thus improving your credit. A good resource to help you organize and monitor your spending is our free Budget Planner Calculator. The next step is crucial to improve your credit. Pay your bills on time. One of the single most important factors in determining your credit score is paying your bills on time. If you have a hard time remembering when your bills are due (I know I do), try this: Write down every single bill, the amount of the bill, and the due date on a calendar. On another calendar, write down your pay dates. Now it will be easy to determine which bills to pay with each pay check. Update and save each calendar because roughly a month later, it can be used again. The benefits of planning a bill payment schedule are avoiding late payments, organizing your budget, and giving you an overall peace of mind. A person who has made late payments in the past can stop the trend of late payments. The longer you pay your bills on time, the better your credit will become. This is because newer credit history is weighed more than the past. So if you’ve had some past slip-ups, don’t worry it is never too late (or early) to start.