April 11, 2022
Q: What should I look for when I’m reviewing my credit report?
Amy: We think this is a great question! Before we answer this question, did you know that different credit reports might have different creditors listed? There are three main credit reporting agencies: TransUnion, Experian, and Equifax. Here are some things we look for:
Do you recognize all creditors listed?
What is the status?
Does the amount owed look correct?
At the bottom of the report, do you see any addresses that aren’t yours? Did you know that could be a big warning sign!
This summer, if you owe any medical debt, it should fall off your credit report, so keep an eye out for that.
Kate: Also, if you find a discrepancy you should reach out to the credit agency. Many now have an option online where you can report or dispute an item.
How to get organized before reviewing your report
Pull out your (or up) your current creditors and financial websites, compare each one to your credit report.
How is my credit score determined?
This depends on who is generating the credit score. If you are a CreditKarma user, you will notice that TransUnion and Equifax both have a different credit score for you; and if you compare that to FICO, that will be different too. However, they all have the following sections in common:
Payment history (timely payments)
Credit Utilization (the higher the credit limits but lower the utilization of those limits, the better)
Age of credit (the longer average age, the better)
Types of accounts (diversity of your credit mix)
Hard credit pulls (the fewer the better your score) - side note, they often bunch “like” pulls, so if you are looking for a house, they might view multiple credit checks from banks less negatively.
Do your friends ask you financial questions?
Pass those questions on to us at AskRPG@rootedpg.com and we will feature them in our future newsletters.