Reviewing your Credit Report

Judging by the sample reports provided by Equifax, Experian, and TransUnion on their websites, the personal or consumer credit report that individuals may request is presented in a clear format in plain English. It may help, however, to be sure that you understand some of the terms below.

In contrast, a commercial or business credit report (what a potential lender receives) typically is presented in a short table form that includes a short-form “credit summary” and is also loaded with abbreviations and codes. Occasionally, you may see a business credit report. A mortgage lender, for instance, showed a colleague her report from his file and asked her to explain a couple of items. If you encounter a similar experience, ask the loan officer to explain any abbreviations you don't know.

Now to the important terms you should understand:

• Date reported. When the creditor sent the report to the CRA
• Date of last activity. When you last used the account, made a payment—or the last time such was reported.
• Status or payment status. The current status of the account with regard to activity and payment. With regard to activity, the account may be open, closed, inactive, paid, and so on. With regard to payment status, the report may list this in clear English (“past due 60 days”) or may use a number code (typically 1 - 9). The number codes, to give just a sample, generally represent this type of scale, though there can be variations among credit bureaus:
  • 0 or C = paid on time; current
  • 1 = paid 30 days past due date,
  • 2 = paid 60 days past due date
  • 3 = 90 days past due
  • 4 = 120 days past due
  • 5 = 150 days past due
  • 6 = more than 180 days after due date
  • 7 = paying under a repayment plan such as Wage Earner Plan or Bankruptcy Chapter 13
  • 8 = Derogatory such as repossession or foreclosure
  • 9 = Bankruptcy Chapter 7, 11, or 12
  • 00 = account too new to have data
  The number codes may be prefaced by a letter indicating the type credit.
  • I = installment loan, such as an auto loan
  • R = revolving credit, such as a bank or store credit card
  • M = mortgage
• Payment history, late payments, or “Lates.” A summary or chart over a specific time (such as 24 or 36 months up to seven years) of how you paid each period, how frequently you paid late and how late the payments were. If you always paid on time, that is indicated.
• Charged off. This negative term indicates a debt that the creditor has given up on collecting from you and has therefore written off the account as a bad debt.
• Collection account. An account in default that the creditor has turned over to a collection agency to attempt to collect payment.
• Delinquent. This term applies to an account when payments are past due; delinquent accounts are typically categorized as 30, 60, 90, or 120 days past due.
• Default. Status when you fail to meet the terms of a credit agreement, particularly failure to pay what is owed.
• Fraud alert. If you have been a victim of fraud or identity theft or have supportable reason to think you may be, you can have a fraud alert put on your credit report.
• Blocked for promotional purposes. You can opt out of inquiries made about your credit report by companies for the purpose of “qualifying” you in order to offer you new credit opportunities (such as “pre-approvals” for a new credit card).
• Consumer statement. If you have disputed information on your credit report, but the CRA upon investigation stands by the report, you have the right to state your side of the case and have that appear in your credit report.