When you get a copy of your free credit report, you must check it immediately. But do you know what it contains? There is not much you can do if you do not know what it contains. Your free credit report is actually your financial report card with all financial details of your life. Your report is divided into four main sections as given below.

Personal Section

This section contains personal details about you that also an identification proof. Details like you name, Social Security Number, your current and past employment and address, your current and past residential addresses et al are included in this section. When you place a request for a copy of your report, you will have to provide your name and Social Security Number or any other personal detail asked for.

Financial Section

When you go through this section, you will find details of all financial transactions made by you in the past year. It will also show details of the transactions like the card number, account, date of purchase and amount. Other details like bill date and payment due/made, outstanding payments, your credit availability and balance are included. Delinquent payments also appear in this section. When you receive your free credit report, review this section carefully and if you find any errors, dispute them to get them corrected.

Inquiries

When you apply for loans or cards, they appear in your report in the form of inquiries. When the lender or the card company receives your application, they pull out a copy of your credit report. This shows up in your report as an inquiry. There are two types of inquires hard and soft inquiries. When the lender reviews your report, it is a hard inquiry and when you review it, it is a soft inquiry. Remember, that hard inquiries affect your credit score negatively.

Collections

When you fail to pay your bills or loans and they become delinquent, they are sent to collection agencies. These agencies send their report to the credit bureaus informing them about the unpaid debts.

Apart from these, your free credit report also contains a space where you can write a 100-word statement to defend yourself or cite reasons for not paying bills et al. Get your annual copy of free credit report and review it so as to keep your credit report and score in good condition.