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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.
Gather a yellow and orange highlighter pen. Whenever you identify
a negative listing, mark the listing in yellow on your scratch
copy of the credit report.
Very often, it is difficult to tell if an item on the credit
report is negative or positive. The following table will help
you identify every negative listing on your credit reports.
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 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
Generic FICO Scores
It's more common nowadays 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 respectively).
This scoring system allows lenders to see your "big picture"
without needing to look line by line to see if you've been naughty
or nice. 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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