An interactive credit lesson
Read your report
with more confidence.
Start with one line. Open it. Learn what to check next.
The Report Decoder
A credit report.
In plain English.
Open any line to see what it means and a practical next step. This is a made-up teaching example, not your report.
01Payment history30 days late
Was the payment actually late?
This line says a lender reported a missed payment. A late payment can hurt your credit; the effect depends on the rest of your report.
Your next step: Compare the account, due date, and payment record. If the reporting is wrong, explain the specific error to the bureau and the lender and keep copies. Accurate late payments cannot simply be disputed away.
Read the CFPB guidance (opens in a new tab)02Card balance40% of limit
How much of your limit are you using?
In this sample, a $400 reported balance divided by a $1,000 limit is 40%. That percentage is called credit utilization. Lower reported card balances can help, but no percentage guarantees a score.
Your next step: Check the balance and limit on the report. A recent payment may not be reflected yet. Pay on time and reduce balances when you can afford to; you do not need to pay interest to build credit.
Read the CFPB guidance (opens in a new tab)03Credit inquiryNew application
Who checked your report, and why?
A hard inquiry usually follows an application for credit and may affect your score. Checking your own report is a soft inquiry and does not hurt your score.
Your next step: If you do not recognize an inquiry, ask the company why it accessed your report. Investigate possible identity theft if the activity is not yours.
Read the CFPB guidance (opens in a new tab)04Collection accountReview details
Does this account belong to you?
A collection entry means a debt was reported in collection. It does not prove that every name, balance, or date shown is correct.
Your next step: Check who owes the debt, the balance, and dates. Dispute specific inaccuracies with supporting records. A credit-report dispute and a debt-validation request are different processes.
Read the CFPB guidance (opens in a new tab)General credit education. Your rights and options depend on the facts. No credit report, login, or Social Security number is needed to use this tool.
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