Understanding Your Credit Report - What Does It Mean?

Your credit report is like a financial fingerprint - its positive (and negative) elements can stay with you indefinitely and serve as a form of identification for your credit trustworthiness.

You should be aware of what your credit reports say about you. The three major credit reporting agencies -- Equifax, Experian and TransUnion -- can provide you with copies of your credit report so that you can check its accuracy.

If you are a resident of the state of Georgia, you are entitled, under state law, to receive two (2) free copies of your credit report from each of the three major reporting credit agencies (Equifax, Experian and TransUnion) per year. Click here for a form you can use to request your credit report, found on the website of Atlanta's real estate guru, John Adams.

But credit reports can be confusing, at best, if you are not sure what you are looking for. There are many websites that can provide you information on how to read your credit report, but I think you should go straight to the source.

Founded in 1956, Fair Isaac is the company that invented the modern credit score system and works with the credit reporting agencies to provide your credit score. Their website -- http://www.myfico.com/ -- provides free downloads on understanding your credit score and report, bankruptcy, identity theft, and more. You can also purchase detailed credit reports through their site and get discounts by joining as a member. (I do not have any experience with using their paid services.)

Here are some downloads you can access from myFICO.com that may help you to better understand your credit report and scores:

• Understanding Your FICO Score
• Your Credit Scores

Understanding your credit score and regularly monitoring your credit report for fraud and accuracy is vital to your credit health.

GEORGIA RESIDENTS: Order your free credit reports today!