Understanding Credit Report & Score

Credit report is a snapshot of your credit history while credit score (calculated from the information in the credit report) is one of the most important numbers lenders use to determine whether or not you’ll qualify for new credit, and at what interest rates and terms of credit.

What's in Your Credit Report

Here are some of the information that may be included in your credit report

1. Personal Records – It contains your complete name, address, age, birth date, spouse’s name, social security information and even your employment records. So filling in accurate information every time you apply for a credit card would reveal how honest and credible you have been with these forms.
2. Financial Data – All your previous Credit card transactions, bank records, loan accounts and all other significant transactions from previous financial activities are collected and put into a reference form.
3. Open Access - This record data base includes all your tax documentations, financial statements and even bankruptcy filing.
4. Evaluation - These are inquiries from various credit institutions who have acquired copies of your credit report and statements.

Note that mistakes on your credit report may have a negative impact on your credit score. It is your responsibility to ensure that your report is accurate and up-to-date. It is advisable that you review your report every 3-6 months.

Here's the good news, by law, you’re entitled to for free credit report from AnnualCreditReport.com once a year; keep in mind, though, that this free report only shows your credit history, not your FICO score.

Alternatively you can monitor your scores from 3 credit bureaus when you sign up with creditscore.com.

Lastly, taking the time to understand credit report score is the first step in the right direction and eventually will help you find out how you can improve your credit score.

TRW Credit Report

If you’re one of those who might hear or encounter the term “credit report” for the first time, it can be somewhat confusing.

But it's important to understand your credit report as these reports reflect and often used as reference by various credit institutions in the evaluation of your loan (or mortgage or credit card) application.

Here are some of the pertinent information that that you'll see in your credit report:

1. Personal Records – It contains your complete name, address, age, birth date, spouse’s name, social security information and even your employment records. So filling in accurate information every time you apply for a credit card would reveal how honest and credible you have been with these forms.
2. Financial Data – All your previous Credit card transactions, bank records, loan accounts and all other significant transactions from previous financial activities are collected and put into a reference form.
3. Open Access - This record data base includes all your tax documentations, financial statements and even bankruptcy filing.
4. Evaluation - These are inquiries from various credit institutions who have acquired copies of your credit report and statements.

It is very important to check your credit report at least once a year so you will know what is going on with your finances.

That said, if you’re looking for a reliable credit report, you might want to avail yourself of TRW credit report.

Credit Report Terminology

Understanding your credit report may seem quite bit of a task. For someone with little financial experience, the information may appear very strange, but hopefully with the following credit report terminology, it should help make the process much easier.

Types of Accounts

• I = Individual account
• J = Joint account
• O = Open account
• R = Revolving (ex: credit card)
• I = Installment (ex: mortgage, auto loan - any type of fixed payment loan)

Payment Codes

• 1 = Paid as agreed
• 2 or 30 = 30 days past due
• 3 or 60 = 60 days past due
• 4 or 90 = 90 days past due
• 5 or 120 = 120 days past due or collection account
• 7 = Payments being made under wage earner plan or similar
• 8 or RF = Repossession or foreclosure
• CO or 9 = Charge off to bad debt or collection account
• PP = Payment plan

Credit Report Payment Terms

• Paid or Paid As Agreed = Account has been satisfied and paid in full
• Paid Settled = Paid in full, but at a reduced amount your creditor agreed upon
• Paid Charge-Off = Paid in full after the account was delinquent
• Paid Collection Account = Paid in full after the account was delinquent

Credit Report Miscellaneous Terms

• Bankruptcy = Either filed for or received a discharge
• Settled = Lawsuit was resolved before trial
• Tax Lien = IRS, State or City tax agency filed a lien against you
• Child Support = Court ordered because of failure to pay
• Judgment = Court issued after losing a lawsuit
• Judgment paid or satisfied = Judgment was satisfied

Resources: CCFCofAmerica.com