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Comprehending the Codes on the Credit File

Each account on the report will display a letter and a number. The letter tells you the type of account:

  • Installment Accounts (I) – You make regular, fixed payments through to the loan is paid in full. Examples: car loans and student education loans.
  • Open Status Accounts (O) – Balances are paid at the end of each billing cycle. Payments might be different each based on contract and usage month.

Examples: charge card where in actuality the balance needs to be paid in full each month and cellular phone bills.

  • Revolving Accounts (R) – You can borrow cash, as needed, up to a collection limit. Payments vary, dependent on your balance. You may pay a payment that is minimum carry a balance. Examples: bank cards , personal lines of credit .
  • Mortgage Accounts (M) – Home mortgages and home equity lines of credit may or may possibly not be reported.

Each account can be assigned a number between 0 and 9, rating how good you will be managing payments on that account.

  • 0 is employed for new accounts
  • 1 means you always pay within 30 days
  • 2 means you have paid 31-59 days late
  • 3 means you have got paid 60-89 days late
  • 4 means you have paid 90-119 days late
  • 5 means you have got paid significantly more than 120 days late
  • 6 is not currently used
  • 7 means you are working on consolidation, consumer debt or proposal management program
  • 8 means repossession
  • 9 means you are in collections or have declared bankruptcy

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