Credit > Reports (3) An R-4 indicates that the consumer paid 90 or more days past due but less than 120 days. R-5 indicates that a consumer paid 120 or more days past their due date. R-7 usually means that a creditor repossessed collateral on the account and R-8 reflects that the account was turned over to collections. R-9 can be used to reflect many different statuses on an account. It may be used to reflect that a debt was discharged in bankruptcy, repossessed, foreclosed upon, or in collections. Credit reports often include a section that provides information that is available in the public record such as tax liens, judgments, and arrests and convictions. Credit reports also give records of inquiries. Inquiries are requests made by creditors to a credit bureau for a consumer's credit report. Inquiries indicate the name of the creditor that requested the report and the date on which the report was requested. Following are factors that are of particular interest to lenders: Does the applicant have a stable job? How many years have they been at their place of employment? Do they have a responsible job title? Does the applicant have a stable style of living? Have they been at their place of residence for five years or more? Do they own or rent their home? Does the applicant exhibit stability with their finances? Do they have a checking and savings account? Do they have many recent inquiries? Does the applicant have a good payment history on existing and previous lines of credit? Do they have a past credit history free of judgments, bankruptcies, charged off accounts, or other signs of financial mismanagement? Does the applicant have a favorable debt to income ratio? (Debt to income ratio is a comparison of your outstanding indebtedness to the income that you have to support debt repayment) Does it appear as though they are overextended on credit? |
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