Have you just recently received a copy of your credit report in the mail? If so, then you may have found that the report is a bit confusing. Many people find themselves a bit lost the first time they attempt to read a credit report. This is because these reports tend to be very long and confusing. Fortunately, by knowing what to look for when you receive your credit report from any of the major bureaus, you can understand it in no time.

Tips for Reading a Credit Report

When you initially receive your report, there are a few different things that you should do right off the bat before you go to a car lot for a loan. This includes, in no particular order:

• Finding out your actual credit score from that particular bureau
• Looking for any errors or discrepancies
• Looking for any accounts you did not open yourself

Being aware of your credit score is probably the entire reason that you ordered your credit report in the first place. This score should range between 500 to 850, with 850 being the best score and 500 being the lowest. Anything over 620 is considered to be an average score in Canada, while anything over 690 is considered to be good.

Aside from knowing your score, which can influence what kinds of auto loans financing terms you can get approved for, you should also look for any errors or accounts you did not open when you receive your credit report. If you notice an error, write to the bureau and send in appropriate documentation to have it fixed.

On the other hand, if you notice an account on your report that you did not open, you may have become a victim of identity theft.

Steps to Take

If it turns out that you have become a victim of identity theft, you will want to place a fraud alert on your social security number, file a dispute, and also obtain a police report. From there, you will be able to have the account closed and removed from your record.