There are three credit reporting agencies in the country: Equifax, Experian, and TransUnion. However, not every creditor reports to every credit bureau. For example, Visa may report to Equifax while your credit union reports to TransUnion and your auto loan company reports to all 3 bureaus.
Credit bureaus obtain their information from three major sources and quite often that information wrong.
You must first know how to read your credit report. Most credit reports use the same codes to report information. Knowing what the codes mean can help you interpret your credit report.
Type of Account
O = 30-, 60-, or 90-day account
R = Revolving open-end account
I = Installment and/or mortgage account
0 = Too new to rate: Approved but not used
1 = Pays (or paid) within 30 days of billing; pays account as agreed
2 = Pays (or paid) in more than 30 days, but not more than 60 days
3 = Pays (or paid) in more than 60 days, but not more than 90 days
4 = Pays (or paid) in more than 90 days, but not more than 120 days, or three or more payments overdue
5 = Account is at least 120 days overdue, but not yet rated 9
7 = Making regular payments under wage earner plan of bankruptcy act or similar arrangement
8 = Foreclosure or repossession
9 = Bad debt; placed for collection; suit judgement; skip
0 0 0 $ $ $ 30 60 90
How many times payments are 30, 60, or 90 days late.
If you have had a bankruptcy or other credit issue there is a strong possibility that your credit report is incorrect.
Many bills that were included in your bankruptcy, or bills you paid in the past, may still be showing up as past due. Often you may find collections on your report from medical bills you thought were paid by your insurance company.
If your credit report is subpar, that’s no reason to beat yourself up (at least not immediately), because you may not even be to blame for all those blemishes. Creditors frequently make mistakes when reporting consumer slip-ups; in fact, one in four Americans finds errors on credit reports, according to a2013 Federal Trade Commission survey.
So make sure to scour your credit report for slip-ups that aren’t your own. From there, you’ll need to contact the organizations that provided the erroneous info (e.g., a bank or medical provider) and have them update it. Once that’s done, your credit score will rise accordingly.
And as for any mistakes thatareyour fault? If they’re one-time mistakes, it never hurts to call and ask that they get removed from your record.
The only fix for major mistakes, however, istime. Make payments by their due date, and you will gradually see your credit score rise. Just don’t expect this to happen overnight.
In the next lesson I will be covering how to quickly build new credit so you can increase your score and qualify for your home easily.
Author:Edie Webber Phone: 817-798-6630 Dated: September 2nd 2016 Views: 432 About Edie: My current state of happiness and realized dreams is the hard won result of a lifetime journey. I ha...
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