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Home: Credit Repair - Can I Really Fix My Credit?: Analyze Your Report
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When you first receive your Trans Union and Equifax credit reports, you will be totally lost. The information is coded in a way that is not immediately readable by the average consumer. Each credit report should arrive with a key that interprets the codes and indicators on the credit report. Sit down with the credit report and the key and study it until you understand what each number and code means.
Don't write on your original credit report -- yet. Make all of your notes on a copy of the report. You will be sending your original report with your dispute letter, so you should make at least two copies of each new report. The original goes with the dispute, one copy is for notes, and the other copy is what you will send in to the credit agency. |
Get a highlighter pen and wherever you identify what you think is a negative listing, mark the listing on your duplicate copy of the credit report. Quite often it's pretty hard to tell if an item on the credit report is negative or positive one. The following table will help you identify every negative listing on your credit report:
Negative Credit Indicators
If the listing contains one or more of these indicators, then the listing is negative. If the listing contains none of these indicators, then the listing is positive.
Experian (formerly TRW) Credit Report
- any item marked with an asterisk any inquiry
Trans Union Credit Report
- any item rated higher than I1, M1, or R1.
- any item listed as repossession, foreclosure, profit and loss write-off charge-off,
- paid profit and loss
- write-off, paid charge off, settled, settled for less than full balance, or included in bankruptcy
- any collection amount, whether paid or not.
- any court account, including a lien, judgment, bankruptcy chapters 11, 7, or 13, divorce, satisfied lien, or satisfied judgment.
- any item showing one or more thirty, sixty, or ninety day late payments in the column to the far right.
- any inquiry.
Equifax Credit Report
- any item rated higher than I1, M1, or R1 (such as R2 or I9).
- any item proceeded by a ">>>>" icon.
- any item listed as repossession, foreclosure, profit and loss write-off charge-off, paid profit and loss write-off, paid charge off, settled, settled for less than full balance, or included in bankruptcy.
- any collection amount, whether paid or not.
- any court account, including a lien, judgment, bankruptcy chapters 11, 7, or 13, divorce, satisfied lien, or satisfied judgment.
- any item showing one or more thirty, sixty, or ninety day late payments in the column to the far right.
- any inquiry.
Those I2 and R9 codes - what do they mean?
R- Revolving (usually a credit card)
I - installment (like home or auto loan)
R1 or I1 = pays as agreed never late
R2 or I2 = 30 days late
R3 or I3 = 60 days late
R4 or I4 = 90 days late
R5 or I5 = 120 days late
R7 or I7 = making regular payments under wage earner plan
R8 or I8 = repossession
R9 or I9 = charge off |
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Generic FICO Scores
It's more common today to use a shared scoring system. The "branded" name is FICO and it's quickly becoming the "generic" term (much like Band-Aid and Q-Tip). This scoring system allows lenders to see your "big picture" without needing to look line by line to see if you've been meeting your obligations. Some lenders will have automatic disqualifiers such as Bankruptcies, Charge Off's or simply from being late in the last 6 months etc. regardless of your score.
What it means...
O = Open (entire amount due each month i.e. AMEX)
R = Revolving (payment amount variable i.e. VISA)
I = Installment (fixed number of payments i.e. Auto loans)
0 = Approved, no rating
1 = Paid as agreed
2 = 30+ days late
3 = 60+ days late
4 = 90+ days late
5 = 120+ days late or collection
7 = Making regular payments under wage earner or similar plan
8 = Repossession
9 = Charged off to bad debt |
J = Joint
I = Individual
U = Undesignated
A = Authorized User
T = Terminated
M = Maker
C = Co-Maker/Co-Signer
B = On behalf of another person
S = Shared |
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