When you get a copy of your credit report the first thing you will notice is that it gives your name and address. You should check to make sure this is current. It also gives past addresses if you have moved. These should also be checked for accuracy.

The next section tells you who has requested your credit rating in the past. Make sure that these have been loans that you applied for to ensure that someone else has not been using your information to get money and leaving you with a bad credit history.

The following sections detail the accounts that you currently have open. The amount of the monthly payment you are required to make is listed as well as if you have been making payments on time. If you have been late with any payments, the number of days you were late is there as well as information about any payments that you missed. If you have a lot of items in this section, it will mean that you probably owe a lot of money and lenders will be wary of approving a loan. They will have to make sure that your income can actually support the monthly payments you have to make.

If you have had loans or accounts in the past that you paid in full, these will also be listed. These items are favourable items on your credit report. The lender can see that you have paid off bills and will see you as a good risk for borrowing money.

If you have any judgements made against you in order to collect payment for a loan these will be listed on your credit report. A judgement means that a lender has sent your account to a collections agency or small claims court in order to force you to make the necessary payments. Such an item would tell the lender that at some point in the future, he/she may have to take the same action to get back their money.

Bankruptcy is the most serious item you can have on your credit report. It will stay there for 10 years and most lenders will refuse you a loan, if you have this detail in your credit history. If you have filed for bankruptcy, it means that those from whom you borrowed money, probably did not recoup their losses. You will be denied credit at most financial institutions with such an unfavourable item.