A credit report is a snapshot of the credit history of a consumer who has used credit facilities offered by financial institutions. This credit report is maintained by the country’s major credit reporting agencies (CRAs) with the help of creditors. The creditors supply the CRAs with information about the credit accounts of their customers. Every consumer must check credit report online to verify the accuracy of the information contained in their file at least once a year. This helps to:
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Gauge their creditworthiness
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Improve their credit rating
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Check whether they have fallen victim to identity theft or fraud
Check Credit Report Online for Your Credit Payment History
While checking credit report online, you might find that your credit payment history is described in numerous ways:
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An alphanumeric rating: Some CRAs report lenders' rating on each of the items in your credit history on a scale of 1 to 9. A rating of "1" indicates that you have been paying your bills within 30 days of the due date. A rating of "9" is indicative of a continuous default on the bill payment. It could also mean that you have made a consumer debt repayment proposal to the lender. The numbers are preceded by an alphabet, I, O or R, in this type of rating. For example, your credit report may display your rating in the payment history section as I4, O4 or R4. These letters reflect the type of credit used by you:
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"I" means you were given credit on an installment basis. Such a credit could be a car loan, where you repay the borrowed money on a regular basis in fixed amounts for a specific period of time until the loan is paid off.
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"O" indicates you have an open credit, such as a line of credit. Here you can borrow money as and when needed up to a certain limit. You need to repay the total balance at the end of each period. Student loans, for which the do not start repayments until you are out of school, are also included in this category.
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"R" means you have a revolving credit. In this category, you make regular payments of varying amounts based on the balance of your account. You can then borrow money up to your credit limit. Credit cards are a good example of revolving credit.
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A payment chart: This chart shows your payment history over the last couple of years.
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A payment scale: This scale indicates the number of times you made bill payments 30, 60 or 90 days after the due date.