Understanding Your Credit Report

The first step in trying to revive your credit, is to know what all of the codes and numbers actually mean on your credit report.

Until you know this you will never be able "Understand Your Credit Report " this will allow you to dispute any errors that may have been made or resolve any negative entries.

Negative Entries

Bankruptcies remain on on your credit report for ten years while other types of entries are generally reported for seven years.

If an account that was previously pat due has been brought current, and has either been paid off or kept current for at least 1 year, the creditor might agree to an early deletion of the past due references.

Write a letter to your creditor and request that the negative entries be removed.

Most increases to your credit scores take place over time and require an ongoing effort. The only true quick-fixes are to pay down debt and to successfully dispute negative information on a credit report.

Credit scoring software looks at 5 areas of your report:

• Your Payment History
• Amounts You Owe
• Length of Your Credit History
• Types of Credit Used
• Your New Credit

Who is Responsible for the Account

I = Individual

T = Terminated

M = Maker(signer)

C = Co Maker

U = Undesignated

A =Authorized User

B =On Behalf of another

S = Shared

Type of Account

O = Open account ( 30 or 90 days)

R = Revolving or option account

I = Installment Account (fixed number of payments)

Current Method of Payment

1 = Pays account as agreed

2 = Pays( or paid) after 30 days of due date but before 60 days,not more than one payment due at any given time.

3 = Pays in more than 60 days, but less than 90, or two payments past due.

4 = Pays in more than 90 days, less than 120, three payments past due

5 = Pays in more than 120 days.

7 = Making payments under wage-earner plan or similar arangement.

8 = Repossesion

9 = Bad debt, placed for collection; written off




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