How to read a Credit Report(See table to the left 'Credit Report Codes')

Credit Report Rating Codes

Installment          Revolving or           Open Account          Meaning
Account               Option Account      (30, 60, or 90-day 

(Fixed number    (Open-ended)          account)
of payments

I0                                 R0                               O0                    Too new to rate

I1                                 R1                               O1                     Pays account as agreed

I2                                 R2                               O2                     More than 2 payments past due                  

I3                                 R3                               O3                     More than 3 payments past due

I4                                  R4                              O4                     More than 4 payments past due

I5                                  R5                              O5                     More than 120days or 4 payments past due

I7                                  R7                              O7                     Making regular payments under WEP

I8                                  R8                              O8                      Repossession

I9                                  R9                              O9                      Bad debt; placed for collection

IA                                  RA                             OA                     Account is inactive

IB                                  RB                             OB                      Lost or stolen card

IC                                  RC                             OC                     Contact member for status
ID                                  RD                             OD                     Refinanced or renewed

IE                                  RE                              OE                     Consumer deceased

IF                                  RF                              OF                      In financial counseling

IG                                  RG                             OG                     Foreclosure process started                                 

IH                                  RH                             OH                     In WEP of other party

IJ                                    RJ                              OJ                     Adjustment pending

IM                                  RM                            OM                    Included in Chapter 13


  • How to read a credit report
  • Statute of Limitations on Debts
  • What is a FICO score
  • What makes up a FICO credit score
  • Establishing New Credit
  • Installment Accounts/Revolving Accounts

Credit Education 

35% is based on your payment history. Accounts paying history (late payments or paid as agreed), number of revolving accounts, installment accounts, open accounts, etc.
30% is amounts owed. Amounts owed on an auto loan, home loan, credit cards, Installment loans, etc.
15% is Length and History. The length of time an account has been established. The longer an account is open and paid as agreed, the credit score will continue to improve.
10% is New Credit accounts. The number of inquiries to apply for new credit. If a credit report is pulled to many times in a short period of time the credit scores are affected. To many inquires indicates that the applicant may be in some type of financial trouble.
10% is the type of Credit Used. Revolving credit, installment loans, secure debt, auto loans, home loans etc. The number of loans, balance's and available credit does make a difference in affecting the score.

What is a FICO credit score?

Fair Isaac and Company is a credit score company founded by engineer Bill Fair and Mathematician Earl Isaac. Developed to determine a consumers credit score. FICO scores are provided to lenders by our three Major Credit Bureaus: Experian, Equifax and Trans Union. Credit Scores Represent the credit worthiness of a person and the likelihood that he or she will pay back debt. FICO scores range between 300- 850.

'Authorized User' also known as the "Piggyback Method" is the fastest way for someone with no credit or bad credit to establish good credit fast! Most Parents or grand parents use this method for their children especially those college students brand new to credit. Spouses and relatives could also benefit from being added as an 'Authorized User' to an existing good standing credit card account. The key is: be sure to give the credit card company the full name and Social Security Number of the person being added to the account. Further more, be sure the account has a good couple years history (the more years the better), has a balance of 30% of the credit card limit or lower, it is paid on time monthly with no late payments and be sure the credit card company reports to all three major credit bureaus (Experian, Equifax, Trans Union). Please note Authorized user's do not have to have any access to a credit card or the account, it is only for reporting purposes to help jump a credit score up fast!

Establishing New Credit


Statute of Limitations for Debt

Credit Repair Today Credit Reports And Scores

Credit Repair Today Credit Education And Repair


Length of Credit History Rating


Statute of Limitations for Debt in the United States

A secure credit card is a great way to get started establishing credit and perhaps the most popular. This could work for business or personal credit. A secure credit card is when money is deposited with a financial institution and in turn a credit card is issued with an equal amount of  the deposit. A Credit Union or a well established Bank are the best choice's. The best way to establish credit is to have a personal "installment loan" and a revolving credit card. Some financial institutions will grant you a personal loan in which you could use those funds as the secure deposit for a "secured credit card." The difference is an installment loan is a loan you make monthly installment payments on or pay ahead; a revolving credit card is card you use and pay back every month. The key is to never spend more then 10% of the card card limit the first few months. In those few months, spend on the card and pay back what you spend within one week. After just a few short months credit scores will increase and credit has been established to open the doors to higher credit limits and lower interest rates.

How many Open Accounts should you have?

Authorized User/Piggyback Method

What makes up a FICO Credit Score?

What is an Installment account vs. a Revolving account?

Installment account

Auto loan
Personal loan
Mortgage loan
Home construction loan
Land loans
Student loans

Revolving account

Credit Card
Charge Card
Store Value cards
Secure Credit Cards