When you apply for loans or credit, lenders/creditors prefer to check your creditworthiness. The only way to do it is to pull your credit report from the credit bureaus. Your credit report provides them with the details of loans/credit you've applied for and how you've managed them. To get an idea of what a credit report is all about, check out the topics given below:

As per Federal laws, any individual can access a free copy of his credit report once a year from any or all of the bureaus. One can also obtain a free report under the following conditions:

• Your report has inaccurate detail due to fraud or id theft
• You're unemployed and plan to look for a job within 60 days
• You're turned down for a loan (order report within 60 days of denial)
• You're on some kind of welfare

In order to order a free credit report, you can call up at the toll-free number 1-877-322-8228. Alternatively, you can request for a free credit report at annualcreditreport.com, the central website set up by the bureaus. You can also fill out the Annual Credit Report Request form available at the website and mail it to:

Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281

However, when you don't get a free credit report, you need to buy it for $10.50. Similarly, if you'd like to get your credit score, you'll have to purchase it as free credit report scores are not available.

In order to get a free credit report (or one for a fee), you'll have to provide personal and financial details as asked by the bureau. Once you provide the details with the order, it'll take 15 days to get the report, However, you can access it instantly if you request for it online.

Your credit report comprises of 4 sections including personal and financial information which your creditors report to the bureaus. The sections are given below:

1. Personal Information: This includes -
   • Your name, address & contact number
   • Social security number
   • Your date of birth
   • Current and previous employers' names


2. Tradelines: This section speaks about -
   • Types of credit accounts or loans you have
   • Date when you opened the account
   • Credit limit or loan amount
   • Your account balance Account Status (open, inactive, closed, paid)
   • Payment history (late payments, default, charge off etc)


3. Inquiries: This comprises of a list of creditors/lenders and all others who have accessed your credit report so far. Inquiries include -
   • Soft inquiry (involuntary): This occurs when you check your report/credit history or when the lender/creditor checks your report for promotional purposes.
   • Hard inquiry (voluntary): This occurs when lenders or creditors pull your report when you apply for loans or credit.
   
   
   Only hard inquiries are shown to lenders when they order your copy. Soft inquires are shown when you ask for your credit report.


4. Public records and collections: This includes -
   • Liens and judgments, foreclosure, bankruptcy
   • Wage garnishments
   • Reports from State and County courts
   • Collections with name and contact detail of CA

When you start checking your credit report, you'll come across 4 sections as stated above. Only 2 sections - Tradelines and Inquiries should be read using alphanumeric codes as provided by the credit bureaus.

How to read credit report tradelines
You'll find a letter beside each tradeline or credit account stating your relationship to that account. Here's what some of the letters imply: J = Joint, I = Individual, A = authorized User, C = Co-maker, T = Terminated

Regarding types of credit accounts, there are letters;

O = Open account, R = revolving account and I = Installment account.

Also, there are numbers which denote your payment status for the account;
0 = Approved but not yet used or too new to rate
1 = Paid as agreed
2 = Past due for 30 days or more
3 = Past due for 60 days or more
4 = Past due for 90 days or more
5 = In collection or past due for 120 days or more
7 = Making regular payments
8 = Repossession
9 = Charge off

Besides, there are combinations such as:
O1 = Paid as agreed open account
R1 = Paid as agreed revolving account.

How to read credit report inquiries
Let's consider the codes as used by Equifax:

PRM = You have been pre-approved by a creditor
AM or AR = Your creditor has pulled credit report to check if there's any change in your financial situation.

Credit report repair or credit report help involves ways to fix bad credit report which may result from negative items on your report or due to inaccurate data being reported to the bureaus. In order to remove errors and fix credit report, you need to send a certified mail to the bureaus and the financial institution (which provided the information) and ask for credit report help.

You need to support your claim by copies of statements or cancelled checks and include a copy of your credit report and a return receipt request with the certified mail. So, there'll be proofs of filing the dispute and the bureau receiving the mail. Also, keep a copy of the mail along with the documents you sent.

The credit bureaus take 30 days to dispute any inaccurate information. The bureaus may even send you a free credit report if there has been any change in it after they have fixed credit report for any error.