How to Understand Credit Report Delinquencies

Check your accounts' standing on your credit report.

Credit report delinquencies, or late payments, make up 35% of your credit score. To maintain a good credit rating, it's vital that you pay your bills on time and check your credit report regularly for any discrepancies. The history of payment section of your credit report shows the number of past due accounts, how long they have been past due, and the status of each account, from accounts in good standing to those that were included in a bankruptcy.

Instructions

1. Locate the credit history section of your credit report. The credit history section is the second section in the report, after the information section.

2. Find one of your accounts (the account name will usually be identified by the last few digits). The account may be identified with a code (R for revolving credit, like credit cards, I for installment loans, like car payments, and O for an open account (30, 60, or 90 day account).

3. Locate the number (if any) next to your account. While an Experian credit report states the account status in easily understood terms, like "never pays late," or "typically pays 30 days late," other credit reports might include a number from 1 to 9, where 1 is an excellent payment history (pays as agreed) and 9 is a terrible one (placed for collection). A zero means that the account is new. For example, an "R1" on an account means that it is a revolving credit account with an excellent payment history (never late). Other codes that may appear in place of a number are:
   A Inactive
   B Lost or stolen card
   C Contact member for status
   D Refinanced or renewed
   E Consumer deceased
   F In financial counseling
   G Foreclosure process started
   H In WEP (Wage Earner Plan) of other party
   J Adjustment pending
   M Included in Chapter 13

Tips & Warnings

• You are entitled to a free credit report once a year from the three main credit bureaus. You can access the information for your credit reports at AnnualCreditReport.com.

References

• Sallie Mae: Understanding Your Credit Report
• BankRate: How to Read and Understand Your Credit Report
• Credit Engine: Credit Report Formatting

Resources

• Annual Credit Report: View and Print Your Annual Report