Your credit report can be broken down into 6 sections which include the following:
- Personal Information – your present and past addresses
- Inquiries – An inquiry is shown on your credit report every time you apply for a loan or open a bank account. The more inquiries, the worse your credit profile. Try to keep credit inquiries to four a year.
- Employment history – listed here you will find your last 3 employers
- Public records/collections – in this section your will find a list of collections, judgments, bankruptcies, proposals or lien on assets. Defaults even on small amounts from a telephone bill, gym membership, 407 ETR are harmful to your credit.
- Trade Lines – gives the whole record of your debt with each creditor you borrow from – creditor’s name, date(s) amount borrowed, credit limit, terms of payment, balance owed and credit rating.
- Credit Ratings – what they mean: R refers to a credit card (revolving credit) and I refers to a loan
R1 and I1 – up to date
R2 and I2 – 60 days late
R3 and I3 – 90 days late
R4 and I4 – 120 days late
R5 and I5 – 150 days late
R7 and I7 – credit counseling
R8 and I8 – repossession
R9 and I9 – bad debt – write off
**If you fall 30-150 days in arrears and pay your account up to date, your rating reverts to an R1 or I1. If it goes to R9 or I9, it will remain for 7 years from the date the debt is paid.
This information is courtsey of goprudent.net.
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