Credit Anatomy

WHOSE ACCOUNT:
Indicates who is responsible for the account and the type of participation you have.

XPN= EXPERIAN / EFX= EQUIFAX / TU= TRANS UNION
Credit Anatomy

On the right or left side of your credit report you will find a column that is marked status. You will find either R1-R9 or I1-I9 or O1, lets talk about what R/I/O means.

R= Revolving:
This means no matter how far in advance you pay this type of account there is a payment due every month as long as the account carries a balance.

I= Installment:
This type of account can be paid (For Example) 6-months in advance and you will not have a payment due for 6-months.

O= Open:
This means balance in full is due every month

IDENTIFYING NEGATIVE CREDIT

R2-R5 and I2-I5 means account is delinquent, although an R1 or I1 = Current account could have been delinquent at one time and now is current, remember 35% of your credit score is based on your ability to pay on time.

R7= Means making regular payments through a third party, for example: credit counseling service, or a wage earner plan paid through a Chapter 13 bankruptcy or in some cases arraignments directly with the creditor themselves. REMEMBER: If you have filed and completed a bankruptcy (Chapter 7) there should be a 0 in the balance fields on everything you included in your Chapter 7 bankruptcy. If there is a balance in these fields you must have them removed. Remember: Fico Score’s go by debt to income ratio and the debt to income ratio comes from the balance fields.

R8= Repossession: this means the bank has taken back the security of the debt such as Auto or Home, whatever the debt was secured by. This is were you have to be careful, in a lot of cases the lender will sell the repossessed item for a lot less then its worth and come after the remainder of the loan, this is also known as the deficiency balance, so if your lender tells you just turn in the car and all is forgiven, get it in writing. Note: If you are upside down on your car (owing more then the car is worth) you need to talk to your insurance agent about getting (Gap Insurance) this is in case your car is totaled, the insurance company is only going to give you market value, and without Gap Insurance you would owe the rest of the debt and have nothing to show for it. Gap Insurance if you had it would pay the balance of what was left after the insurance paid the market value.

R9= Profit and Loss also known as P & L. This takes place when a creditor has written your account off as a bad debt, unable to recover funds in the time allowed by the bank, these accounts can be sent to OSA = Outside Agency (collection agency) or could be referred to legal or in some cases some banks have their own inside collection agency.

COLLECTION ACCOUNT INFORMATION

These are accounts that have been written off as a bad debt and sent to a third party, (The Collection Agency). Remember if you dispute an agency account you must dispute the creditor who sent the debt there at the same time. The agency account will reflect in its content which creditor sent the debt. Also remember a collection agency is alot easier to get a settlement from then the creditor. In most cases an agency will settle for 50% as paid in full. Never do a settlement unless you get the settlement in writing first.

PUBLIC RECORD

In this section you could find Bankruptcy’s chapter 7, 11, 13 and 12 as well as Liens & Judgments no creditor will loan money if Liens& Judgments with a balance owing exist in this field because the creditor knows the applicants income could be at jeopardy through garnishment of funds or bank account, and cause the applicant a lack of ability to pay back the debt. As mentioned before if disputing a Lien or Judgment the creditor that sent the account must be disputed at the same time. These types of accounts have all been through the court system. Remember as a general rule, credit information remains on file for 7 years past the date of last activity. We at Protect Your Rights have seen accounts stay on as long as 10-12 years. Chapter 13 bankruptcy is on record for 7 years of date of last activity so if it takes 4 years to pay off the chapter 13 that’s 12 years on your credit history. “UNLESS YOU DO SOMETHING ABOUT IT !”

P.S. Be careful, there are attorneys out there that will talk a consumer into filing a Chapter 13 knowing the consumer cannot afford to make the payments. So later on down the road, the consumer will have to file a Chapter 7 Liquidation, allowing the attorney to collect two separate fees. Remember the bankruptcy attorneys income rely’s on the amount of bankruptcies they file. Think about it – It is their BUSINESS – do not fall into this trap!

(CONTACT US AND LET US SHOW YOU HOW TO TAKE CARE OF YOUR OWN CREDIT FOR THE REST OF YOUR LIFE)