#How to Read and Understand Your Credit Report

It's important to review your credit periodically. But your credit report contains a lot of information, and it can be confusing to navigate. Here's how to decode and understand your report.

For a number of reasons, experts recommend checking your credit report once a year. Because your credit is a collection of your debt history, it can affect your loan interest rates and ability to open financial accounts. An annual review helps ensure your report is up-to-date and accurate. Also, if you're a victim of identity theft, your report might contain errors. Overall, reviewing your credit keeps you aware of your financial situation.

The Anatomy of Your Credit Report

You might see a handful of sections on your report, but most of the information is grouped into four main categories: personal information, public record information, creditor information and credit inquiries.