How to Identify Negative Items

After the customer gets you a copy of their credit reports it is time to search through them and identify all the items that are affecting the credit score.

The following list will help you identify items affecting your customer’s credit score:

- Bankruptcy filing records (Filed, Discharged, or Dismissed)
- Included in Bankruptcy Items (included in BK)
- Charge-offs (paid and un-paid)
- Collections (paid and un-paid)
- Closed accounts with late payments (late payments affect the account up to 7 years after)
- Wage Earner Plan
- Foreclosures
- Inquiries
- Judgments (civil, small claims)
- Late Payments
- Repossessions (legal, voluntary)
- Tax Liens (state or federal)
- Account Settled

NOTE:  All the above annotations negatively affect the credit score and should be considered for dispute.

You can also use payment history codes to identify derogatory items:

R – Revolving (usually a credit card)
I – Installment (like mortgage or auto loan)
R2 or I2 = 30 days late
R3 or I3 = 60 days late
R4 or I4 = 90 days late
R5 or I5 = 120 days late
R7 or I7 = making regular payments under wage earner plan
R8 or I8 = repossession
R9 or I9 = charge off