A credit report contains wealth information about one’s financial actions. It usually consists of five sections: personal information, public record information, collection agency account information, credit account information and inquiries.

The credit report consists of all credit accounts and loans and other bills such as phone bill payment history, electric bill history, and cable bill payment history if they have been delinquent.

Individuals who apply for credit cards and rental housing are those who are legally authorized to obtain a copy of credit report. Risk assessment is the primary reason why creditors look at credit reports.

A credit report indicates the following:

1. Standing of open accounts

2. The amount of debt

3. How often a bill was paid late

4. Late payments

It is advisable to obtain copies of credit report in a regular basis. A copy of a report can cost eight dollars but can be obtained for free if only if there is a denial within sixty days of credit report request. The two major credit reporting agencies are Equifax and Trans Union.

To correct wrong information, fill out inquiry forms that accompany the report. Indicate on the form what is incorrect and send it back to the agency where they will investigate the claim and report back in thirty days. Make sure to send evidence in sending a request for investigation in support of the claim.

These evidences would be copies of documentations showing the creditor in error. Credit information will be updated once proved that the inquiry has been proven to be correct and will send a new copy. One can still appeal for rejected inquiries.

It’s important to keep track who has made inquiries in one’s own file and ask the business or person why they ask about it. Anything reported to a credit reporting agency stays in file for seven years. Unauthorized inquiry can always be reported.