When you review a copy of your credit report, you may find a numbering system describing the status of each account. The system shown here applies only to Equifax reports but it serves to describe how the entire creditor community views the progression of indebtedness.  Following is a summary definition of this system:

Category                            Description    

R-0                                       Approved but not used, too new to rate
R-1                                       Current
R-2                                       30 days, Past Due
R-3                                       60 days, Delinquent
R-4                                       90 days, Past delinquent, A/C closed
R-5                                       120+ days past due, assigned to Collection Dept.
R-6                                       Assigned to outside Collection Agency
R-7                                       Enrolled in supervised repayment plan
R-8                                       Repossession
R-9                                       Charge Off

Credit reports also include a section entitled “Public Record.” This section includes any negative information that is a result of some formal legal proceeding. Items in this section can include bankruptcy, judgments, liens, repossessions, etc. The reporting of such information on a credit report is subject to the same rules of accuracy as any other information.
Credit reports also include an “Inquiries” section. This is a listing of every entity that has requested a copy of your credit report. No one can request information about you unless they have your permission or a valid legal reason established by the law. If upon request the credit bureaus cannot produce your written authorization for specific inquiries, they are legally required to remove them from your credit report.

There are two types of inquiries. Those initiated by you, which are entitled to stay on the report for two years. There are also inquiries posted by credit grantors before they offer you credit. These are listed as "promotional" inquiries on your credit file because only your name and address were accessed, not your credit history information. They are not sent to credit grantors or businesses for reasons of credit reporting. They are listed for your informational purposes only and not seen by anyone else but you.

The major characteristics of a good credit report include the following:

1. All accounts are current
2. There are no late payments
3. There are no unsatisfied collection or charged off items
4. There is nothing derogatory in the Public Records Section
5. There are less than four inquiries in the last six months
6. Revolving accounts are older than two years of age
7. Outstanding balances are less than 50% of credit limits