How to Check Bad Credit Ratings

If you've been turned down for credit, it's probably because you have a bad credit rating. Lenders check your credit rating every time you apply for credit. The more you apply and get turned down, the worse your credit rating gets. Get a copy of your credit reports regularly, so you can check if you have bad credit ratings and see areas where improvements can be made.

Instructions

1

Get a copy of your three credit reports: Experian, Equifax and TransUnion. Apply online at the AnnualCreditReport website. You can get your reports free once a year. Follow the easy online instructions to view your reports instantly and check for bad credit ratings.

2

Print a copy of each report. It makes it easier to check through and highlight areas of concern. Check each section of the report. The first few sections list your personal details, employment history and summarize your credit history. Read through the credit history section: it will give you an overview of areas where you may have bad credit ratings.

3

Go to the payment history section (usually section 9). This section shows the status for each line of credit. The right side of the section shows a series of numbers and letters. These relate to your payment history. The numbers run from 0 to 9 where 0 means payments are up-to-date and 9 means your account has been passed for collection or possible bankruptcy. Numbers 1 to 6 determine late payments. Code 1 indicates 30 days late while 6 indicates 180 days late. Check for late or missed payments as these create a bad credit rating.

4

Check the letter next to each line of credit. The letter C or * means the account is good. Other letters and there meanings include: G, collection, H, foreclosure, K, repossession. The number and letters combined are used to work out your suitability for credit. The code G6, for example, means the account is in arrears by 180 days and is due for collection proceedings. Codes other than C0 or *0 are likely to result in a bad credit rating.

5

Check the remaining sections of the report. These show accounts that have gone for collection or details of civil actions: both result in a bad credit rating.