Reading Your Credit Report


Reading a credit report actually isn’t as difficult as you might believe. Since different reporting agencies put the same data into differing formats, this is a break down on what the most common items mean:

R = Revolving
I = Installment
M = Mortgage
O = Other

Color Code Good/Bad

1 = Paid on Time
2 = 30 Days Late
3 = 60 Days Late
4 = 90 Days Late
5 = 120 Days Late
8 = Voluntary
9 = Charge off/Loss
Together they would Look like these examples:

R-1
I-9
M-1

S = Signer
J = Joint Account
B = Individual Borrower

Opened = The date the account was opened
Last Reported = The date the creditor last reported to the agency
Last Active = The date of last activity on the account

The rest of the information on the the report is pretty clear and concise.

If your credit report reflects nothing but R-1’s and I-1’s with no collections, judgments or liens, you’re in great shape with regards to credit condition. If you have no credit, you’re still in good shape for an FHA Loan. If you have credit issues such as collection accounts, charge offs, etc., you need to go to Repairing Your Credit 101 and get to work!

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