Each account on your report will display a letter and a number. The letter informs you the form of account:
- Installment Accounts (I) вЂ“ You make regular, fixed payments before the loan is paid in full. Examples: car loans and student education loans.
- Open Status Accounts (O) вЂ“ Balances are paid at the end of each billing cycle. Payments could be different each based on contract and usage month.
Examples: charge card where the balance needs to be paid in full each month and cellular phone bills.
- Revolving Accounts (R) вЂ“ You can borrow money, as needed, up to a set limit. Payments vary, based on your balance. You may pay a minimum payment and carry a balance. Examples: bank cards , lines of credit .
- Mortgage Accounts (M) вЂ“ Home mortgages and home equity lines of credit may or may not be reported.
Each account can also be assigned a number between 0 and 9, rating how well you will be managing payments on that account.
- 0 is employed for brand new accounts
- 1 means you always pay within 30 days
- 2 means you’ve got paid 31-59 days late
- 3 means you’ve got paid 60-89 days late
- 4 means you have paid 90-119 days late
- 5 means you’ve got paid significantly more than 120 days late
- 6 just isn’t currently used
- 7 means you may be taking care of consolidation, consumer debt or proposal management program
- 8 means repossession
- 9 means you are in collections or have declared bankruptcy