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Understanding CreditLesson 5 of 8

Lesson 5 · About 12 minutes

Read and Decode Your Credit Report

An account entry is sometimes called a tradeline. Read it as a group of facts—not as a single grade about you.

Five parts to check

Who and what

Creditor name, partial account number, and account type.

Money and dates

Balance, credit limit or original amount, date opened, and last reported date.

Status and history

Current status plus the month-by-month payment grid or symbols.

What do “1s” in payment history mean?

Some report formats use numbers in a payment grid. A 1 may indicate paid as agreed or current in certain rating systems. Other reports use words, check marks, blanks, or numbers that represent days late. Never assume: find the key or legend on the report and match the symbol to the month shown.

What can R9 or R09 mean?

In a North American account-rating system documented by the Government of Canada, R identifies revolving credit and R9 means a bad debt or an account placed for collection. A leading zero may be formatting. This code is not universal across U.S. consumer reports. If it appears, use that report’s legend and contact the reporting company or creditor if the meaning or status is unclear.

Practice account line

Community Card · Revolving · Balance $240 · Limit $1,000 · Status: Current · Last reported: August

This example says the account is revolving, the reported balance is $240, and the status was current when the creditor last updated it. It does not prove what the balance is today.

Knowledge check

Try three quick questions

This is practice, not a test. Answer every question, then review the lesson takeaway.

1. If a payment-history code is unfamiliar, what should you do first?
2. What does an account line need to be read as?
3. If an R9 or R09 appears, what is safest?