Credit Lesson #2, What Does It All Mean?
How To Read Your Report – “What Does It All Mean??”
At first glance, a credit report may look like it’s written in a foreign language. But if you take your time and look through it, you’ll easily be able to understand it. Your job is to locate all the negative items on your report.
You may find alphanumeric coding on your credit report. This coding is used to record the type of account and your payment history.
Below is a key indicating what these letters and numbers mean: O = Open (Open 30 days) R = Revolving [Has regular payments and a predetermined spending limit (credit cards)] I = Installment [Has regular payments and no access to continued spending (mortgage, car loans)] M = Mortgage C = Line of credit
0 = Too new to rate 1 = Current, Paid as agreed 2 = 30 days past due 3 = 60 days past due 4 = 90 days past due 5 = 120 days past due 6 = 150 days past due 7 = Account is under a wage earner payment plan or bankruptcy 8 = Repossession or foreclosure 9 = Collection account or charge off account U = Unrated
If you have this type of coding on your report, you can quickly go down the relevant column and find any negative items. O1, R1 or I1 would indicate an excellent payment history. Obviously, anything ending in 2, 3, 4, 5, 7, 8 or 9 would indicate a negative payment history on the account.
Identifying the negative items is important because I will show you how to get those items removed and raise your credit score in a future lesson… keep an eye out for it!
Next Lesson: Secrets To Removing Expired Items
-Dave
3118 Sweetwater Spgs Bl, Spring Valley, CA 91977, USA
