Reading credit reports can be very confusing. “R” refers to a revolving account, “I” refers to an individual account, and “M” refers to a maker on the account. “Y” refers to a collection account. This rating is supplied by the creditor. It is their rating of you as a borrower. There are only two ratings which are not negative. A rating of “1” means that the account is current and a rating of “0” means that they don’t have enough history with you to rate you.
120 + days late
150 + days late
Included in a re-payment plan such as chapter 13 bankruptcy
REPOSSESSION / FORECLOSURE
CHARGE-OFF / COLLECTION
Every other rating, “2” through “9” is negative. The creditor usually looks at the late pays or other notations such as “charge off” or “collections.” However, any rating but a “1” or “0” indicates that you have problems with the account.
Identifying information is just that — information to identify you. Look at it closely to make sure it’s accurate. It’s not unusual for there to be two or three spellings of your name or more than one Social Security number. That’s usually because someone reported the information that way. The variations will stay on your credit report.
Charged off means the creditor has given up efforts to collect and written it off.
Consumer credit industry resources – Links to important consumer credit industry websites.
Mortgage industry terminology – Decoding the sometimes confusing mortgage industry words and phrases.
Credit Grades – What are credit grades and how do they affect your ability to get credit and good credit terms.
Reading credit reports can be very confusing. “R” refers to a revolving account, “I” refers to an individual account, and “M” refers to a maker on the account. “Y” refers to a collection account. This rating is supplied by the creditor. It is their rating of you as a borrower. There are only two ratings which are not negative. A rating of “1” means that the account is current and a rating of “0” means that they don’t have enough history with you to rate you.
120 + days late
150 + days late
Included in a re-payment plan such as chapter 13 bankruptcy
REPOSSESSION / FORECLOSURE
CHARGE-OFF / COLLECTION
Every other rating, “2” through “9” is negative. The creditor usually looks at the late pays or other notations such as “charge off” or “collections.” However, any rating but a “1
” or “0” indicates that you have problems with the account.
Identifying information is just that — information to identify you. Look at it closely to make sure it’s accurate. It’s not unusual for there to be two or three spellings of your name or more than one Social Security number. That’s usually because someone reported the information that way. The variations will stay on your credit report.
Charged off means the creditor has given up efforts to collect and written it off.
Consumer credit industry resources – Links to important consumer credit industry websites.
Mortgage industry terminology – Decoding the sometimes confusing mortgage industry words and phrases.
Credit Grades – What are credit grades and how do they affect your ability to get credit and good credit terms.