Decoding the Credit Report Made Easy |
|
Do you need help to check your credit report? Are you unable to read it because the information is listed in an unfamiliar code? Some credit bureaus list inquiries by code, rather than by the name of the company. The information is coded in a way that is not immediately readable by the average consumer. They are thus encoded to protect the information. While, TransUnion and Equifax credit reports are very difficult to interpret and understand, Experian credit reports are, in comparison, quite easy. All credit reports contain symbols and codes that may seem abstract to the average consumer. But each credit report arrives with a key that interprets the codes and indicators on the credit report. This key that you get when you check your credit report explains the code. So the first step to check your credit report is to sit down with the credit report and the key, to try and understand what each number and code means. Some of these keys, however, decipher the information, while others just cause more confusion. You must check your credit report carefully, making a note of anything you do not understand. When you do, you will find that your report contains special codes regarding the inquiries. The Fair Credit Reporting Act requires that a credit bureau provide you with trained personnel to explain all information on your report that you do not understand. You should, request the names for all the coded companies listed under the inquiries section. And if the accounts are identified by code number, or if there is a creditor listed on the report that you do not recognize, ask the credit bureau to supply you with the name and location of the creditor so you can ascertain if you indeed hold an account with that creditor. When you check your credit report, you might find an item called the INQ. This stands for the total number of inquiries that have been made on you. This section of the report lists all those creditors and others who have checked it. Every time you apply for a credit card, a mortgage loan, a car loan or some other type of credit your credit record is likely to reflect it. This is an important section, since most lenders consider the number of credit-related inquiries to be an indicator of how much credit you are trying to obtain. As you check you credit report, you will notice that, some of the inquiries listed will be preceded by such abbreviations as AM, AR, and PRM. PRM indicates that the inquiry was made for promotional purposes, such as a review or screening for a pre-approved credit card offer or something else. AM stands for "account monitoring', while AR for "account reviews'. They both indicate that some of your creditors have reviewed the information in your credit report. This could be, perhaps, to determine whether your line of credit should be increased or to cancel your credit card. Then there are the inquiries marked as "csmr" or "consumer". They indicate the times that you have checked your credit report. If there are a lot of inquiries, they may conclude that you will not be a responsible user of credit. So, you must always use it with discretion. Consumer credit laws do not cover inquiries. And once these inquiries are on your file, there is nothing that you can do to remove them. Inquiries generally stay on credit reports for two years. If you have too many inquiries, you may have to wait six months before applying for more credit. But it is the policy of the major credit bureaus to not include promotional or consumer inquiries when transmitting the file to a lender. But it is always possible to challenge the inquiries with the credit bureau. However, you should know that the credit bureaus have the option to refuse to investigate them. But you will not be able to exercise any of your options unless you check your credit report. So, try and make the reviewing of your own file a regular habit. It could be advantageous in the long run. |
