How to Read Our Credit Report
Now that you know where to get your credit report and credit score, let’s dive into how to read your credit report.
There are 3 items to be concerned about:
“Public Records”
“Derogatory Accounts”
“Unsatisfactory Accounts”
1. Public Records
Public records are the worst items to have on your credit report.
Typically, when you have a public record, you will get an overwhelming amount of letters from lawyers who promise to help you. Most of the time, these lawyers purchase your information from the credit bureaus, in order to try to sell their services to you.
Be careful of those attorneys. They will try to scare you.
2. Derogatory Accounts
Unsatisfactory accounts are accounts that have late payments. A late payment can be anywhere between 30-180 days past the payment due date, but has not yet been referred to a collection agency.
3. Unsatisfactory Accounts
Derogatory accounts are usually referred to as a collection agency.
These collection agencies are the individuals who are constantly trying to call and get a hold of you, and typically break the law in the process.
Debt Collectors/ Collection Agencies
ALL DEBT COLLECTORS ONLY CARE ABOUT IS GETTING YOUR MONEY
Be careful when you are negotiating with debt collectors. They will promise you anything to remove an item off our credit report in exchange for making a payment. If you do come to a compromise with them, make sure you get it in writing or else they will run off with your money without taking the negative item off the report.
The Fair Debt Collection Practice Act (FDCPA) explains the rules and laws that collection agencies are required to abide by.