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Credit report is available from the credit bureaus at no cost. They formats of reporting differ slightly basically on presentation but captures and provides all information as established. There is a personal information section or column which contains such details as names, address, social security number, national identification or passport number, date of birth, and employment history information. These are basically for identification purposes. All names are recorded especially where names have changed. Both past and present addresses are also recorded. There is an account summary section that contains all recorded cases of previous borrowing by you or businesses owned by you such as mortgages, home equity loans, credit card repayment history for revolving accounts and credit history for installment accounts.

There is an inquiry section which records all inquiries made into your file both at your request and without. When one seeks a credit card he or she authorizes the creditor to access his or her credit file to access information that is used to make the relevant decisions. A negative report section is provided which lists all previous payment delays or defaults within the last two or three years depending on the policy. This section may also include information on legal suits, bankruptcy, foreclosures among other things.

It is important to see one’s credit file as regularly as possible depending on how many loans you are servicing or number of credit cards held though one still has to check his or her credit file even if sure of prompt payments. The purpose of checking a credit file is to ensure that the information contained in it is as accurate as possible and that nothing is recorded in it which you may not be aware of. You may have a clean credit history and assume you do not have any pending revolving account repayment requirements yet some fraudster had stolen your identity on credit card and used it for mischievous purposes.

Understanding credit report is therefore vital for every individual. It is necessary to understand what every section contains and to ensure that the records are accurate. It is also important to understand whether the credit score portrays you in favorably or otherwise and what you can do to change any report you may not like. It is possible to work towards improving your credit history by limiting your expenditures and paying in time consistently for a period of say, two years. It is possible to launch a complaint if there are inaccurate entries into your records. But it is not possible to seek to change the information in your file just because you don’t like it.