Credit Repair: What Does Prm Mean On My Credit Report?

Understanding the abbreviations and numerical codes included in your credit report, including PRM.

The first step towards credit repair: understanding exactly what is in your credit report. If recently denied credit, many states allow you to receive a copy of your report free of charge from the reporting agency, in large part due to the FCRA, Fair Credit Reporting Act. Alternatively, you can purchase a copy from one or all three of the main bureaus, Equifax, abbreviated as EFX, TransUnion, abbreviated as TUC, and Experian, abbreviated as XPN. Each company keeps their own records, so to get a complete, accurate look at your personal credit history it would be advisable to see all three agencies reports. With all three companies having a presence on the Internet, doing this is easier than ever.

Once you have your report, reading and understanding it is not as difficult as it may seem. First, there are two types of inquiries on your credit report: Hard inquiries and soft inquiries. Hard inquiries affect your credit score while soft inquiries do not. Those that are considered "˜hard' inquiries are from companies where you personally requested them to look at your credit. These could be from any source that you requested a loan or extension of credit from, such as a bank for a home or equity loan, credit card companies, vehicle loans, etc., and other creditors see these. "˜Soft' inquiries fall into two categories: A PRM, standing for a promotional offer, is from a company that would like to offer you a new extension of credit, such as all those pre-approved offers you receive in your daily mail. An AM or AR is from a company that you are already have an association with. For example, a credit card company that you currently have an account with would like to see if you qualify for an extension on your current credit limit. Other soft inquiries could be from potential landlords or employers.

NUMERICAL CODES AND ABBREVIATIONS DECODED

0 = Approved, but account is too new to rate or not yet used

1 = Paying as agreed

2 = 30 or more days past due

3 = 60 or more days past due

4 = 90 or more days past due

5 = 120 or more days past due or is a collection account

7 = Making regular payments under a wage earner plan or other repayment arrangement



8 = Repossession or foreclosure

9 = Charged off account or bad debt that has been placed for bankruptcy

FCRA = Fair Credit Reporting Act

PRM = Promotional Offer

AM or AR = Review of your credit by a present creditor

J = Joint

I = Individual

U = Not Designated

A = Authorized User

T = Terminated

M = Maker

C = Consignor

B = On behalf of another person

S = Shared

Once you understand your credit report, it is important to clear up any discrepancies you find. Upon a recent review of my own, I discovered that when my bank changed ownership, something that occurs often in today's busy world, my accounts were not only given new account numbers, the old numbers never left my files. It appeared as if I had double the number of active accounts. I filed a grievance with each reporting agency, which were in my case two of the three main agencies. To give them time to review and correct their files, I was asked not to apply for any new credit during a 30-day review of my accounts. This could have had a major impact on my purchasing power if I had been in the process of applying for a home loan or new vehicle. Double-check that all soft inquiries are listed as such. One major impact on one's credit score can be when a PRM or AM ends up as appearing to be a hard inquiry.

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