Credit 101 : Your Credit Report (Page 3 of 7)
On Experian's report, your payment history is written in plain English – never pays late, typically pays 30 days late, etc. Other comments might include internal collection and charged off or default. Charged off means the creditor has given up, thrown in the towel. Basically, the company has made efforts to collect the debt, realized that it’s not going to be paid, and subsequently wrote it off.
Other reports use payment codes ranging from 1 to 9; an R1 or I1 on a report is an indication of a good payment history on a revolving or installment account.
Often, the code key will be listed on the report so you can better understand what the codes mean, but they may not.
Credit accounts are divided into five categories: real estate, installment, revolving, collection and other. Here is a better description of each category:
- Real Estate: First and second mortgage loans on your home.
- Installment: Accounts comprised of fixed terms with regular payments, such as a car loan.
- Revolving: Accounts with opened terms with varying payments, such as a credit card account.
- Collection: Accounts seriously past due that have been assigned to an attorney or collection agency.
- Other: Accounts where the exact category is unknown. This could include 30- day accounts, such as an American Express card.
Your credit report lists a summary of the details and terms for each account. This summary includes information about the account number, condition, balance, type and pay status for each account. The summary for collection records is slightly different.
The following information is for real estate, installment, revolving and other type records:
- Creditor: The official account name. This name may be different than you expect if your account is managed by a larger financial corporation.
- Account Number: This is an identifying number for your account. Typically, this would be a credit card number for a credit card account or a loan identification number for a mortgage.
A portion of the number is hidden for security reasons. A partial account number is all that is needed to file a dispute about the record.
- Condition: This is the account’s status as open or closed, according to the most recent update from your creditor.
- Balance: The amount you presently owe on the account based on the last reported activity. Very recent activities may not yet have appeared in the bureaus’ computer system so this balance may be a few days out-of date.
- Type: The account's specific type. Some common types are real estate, automobile, educational and credit card accounts.
- Pay Status: The account's payment status, according to the most recent update from your creditor.
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