Understanding Credit Report Codes
A credit report packs a person’s whole financial record into a shorthand of letters and numbers. This guide decodes every one – account types, ECOA designators, R1-R9 ratings, status codes, and the payment grid – so a landlord or an applicant can read the report correctly.
A credit report tells you whether an applicant pays what they owe, on time – but only if you can read the codes. Each account, or “tradeline,” is summarized in a compact shorthand: a letter for the type of account, a designator for who is responsible for it, and a number or label for how it has been paid. Learn those three layers and the report stops being a wall of abbreviations and becomes a clear payment story. If you are placing a tenant, this pairs with our step-by-step guide to how to screen tenants and to setting a minimum credit score for renting.
The short version: the letter is the account type (R, I, O, M, C), the ECOA code is legal responsibility (I, J, A, C, M), and the number is the payment rating (0 = too new, 1 = paid as agreed, up to 9 = charge-off or collection). Everything else on the page is context around those three facts.
Video: a plain-language walkthrough of the codes on a credit report – account types, ECOA designators, rating numbers, and the payment grid.
Key Takeaways: Reading Credit Report Codes
- Three layers per account: the account-type letter (R, I, O, M), the ECOA designator that shows who owes it, and the payment rating number.
- R1 means paid as agreed; the number climbs 0-9 as payment history worsens – 7 is a wage-earner plan, 8 is repossession, 9 is charge-off or collection.
- Two-digit status codes (11, 71, 78, 80, 82, 84, 93, 96, 97) say the same thing in the Metro 2 format: 11 is current, the 90s are derogatory.
- Read the pattern, not one mark – and when a code drives a denial, the Fair Credit Reporting Act requires an adverse action notice.
What Is a Credit Report, and Why Are There Codes?
A credit report is a detailed record of how a person has managed credit and debt, compiled by the three nationwide bureaus – Equifax, Experian, and TransUnion. Lenders and furnishers send account data to the bureaus in a shared industry format called Metro 2, and that format is why the report speaks in codes: it standardizes a huge amount of history into a compact, machine-readable shorthand. For a landlord it is the single best predictor of whether a prospective tenant will pay rent reliably; for an applicant it is exactly what a landlord sees.
Every credit report is built from four kinds of information:
- Personal identifiers: name, current and past addresses, Social Security number, date of birth, and reported employment.
- Credit accounts (tradelines): credit cards, loans, and mortgages, each with its type, balance, and month-by-month payment history.
- Inquiries: who accessed the report and when, split into hard and soft pulls.
- Public records and collections: bankruptcies, civil judgments, tax liens, and accounts sent to collection agencies.
The rest of this guide walks each coding system from the top of a tradeline down: the account-type letter, the ECOA designator, the payment rating, the monthly grid, the two-digit status codes, and the derogatory markers.
How to Read the FICO Score
The FICO score is a three-digit number from 300 to 850, built by the Fair Isaac Corporation, that condenses the whole report into one measure of credit risk. Higher is lower risk. It is a fast reference point, but it is a summary of the codes below – not a substitute for reading them.
| Score range | Tier | Rental risk read |
|---|---|---|
| 300-579 | Poor | High risk – expect derogatory codes on the report |
| 580-669 | Fair | Medium-high risk – read the payment grid closely |
| 670-739 | Good | Medium risk – typically approvable |
| 740-799 | Very good | Low risk – strong payment history |
| 800-850 | Excellent | Very low risk – near-spotless record |
Five factors drive the number, and knowing their weights helps a landlord interpret it and an applicant improve it:
- Payment history (35 percent): the biggest factor – late payments, collections, and bankruptcies weigh heaviest here.
- Amounts owed (30 percent): credit utilization; using more than thirty percent of available credit drags the score down.
- Length of credit history (15 percent): older accounts and a longer average age help.
- Credit mix (10 percent): a blend of revolving and installment credit shows range.
- New credit (10 percent): several recent hard inquiries and new accounts temporarily lower the score.
Score differences between bureaus are normal. Because each bureau may hold slightly different data, a person’s FICO score can vary by twenty to fifty points across Equifax, Experian, and TransUnion. That spread is expected, not a red flag.
Account Type Codes: R, I, O, M, and C
Every tradeline starts with a letter that names the kind of credit. This is the first half of a classic rating code such as “R1,” and it tells you how the debt is structured – which shapes how a late payment should be read.
| Code | Account type | Typical examples |
|---|---|---|
| R | RevolvingA limit you borrow against repeatedly | Credit cards, store cards, HELOCs |
| I | InstallmentFixed payments over a set term | Auto loans, personal loans, student loans |
| M | MortgageA loan secured by real estate | Home purchase, refinance, home equity |
| O | OpenBalance due in full each period | Charge cards, some utility accounts |
| C | Line of creditA pre-approved borrowing limit | Personal or business credit lines |
A mortgage (M) paid on time is the strongest housing-adjacent signal a report offers, because it proves the applicant has met a large recurring housing payment. Revolving (R) tradelines, by contrast, reveal how someone handles flexible, tempting credit.
ECOA Codes: Who Is Responsible for the Account?
An ECOA code answers a question the score never does: whose account is this? The designators come from the Equal Credit Opportunity Act (15 U.S.C. section 1691) and appear on every tradeline. They matter enormously for tenant screening, because an applicant whose only good history sits on accounts marked “authorized user” has not necessarily paid a bill in their life – that record can belong to a parent or spouse.
| Code | Meaning | Who owes the debt |
|---|---|---|
| I / 1 | Individual | The applicant alone is responsible |
| J / 2 | Joint | Shared responsibility with another person |
| A / 3 | Authorized user | Can use the account but is not liable – the history may be someone else’s |
| C | Co-maker / co-signer | Liable only if the primary borrower defaults |
| M | Maker | The primary borrower; a co-signer backs them up |
| T | Terminated | The person’s relationship to the account has ended |
| S | Shared / co-signer | Signed to guarantee another’s debt |
| X | Deceased | Flags a possible mixed file or identity error |
Landlord tip. When an applicant’s strong tradelines are all coded “A / authorized user,” ask about accounts they hold as an individual (I) or joint (J) owner. Those are the ones that prove the applicant personally pays on time.
MOP Rating Codes: What R1 Through R9 Mean
The classic rating code is a letter plus a number – the “manner of payment,” or MOP. The letter is the account type you just saw; the number is a zero-to-nine payment rating where 1 means paid as agreed and the number climbs as the account falls behind. So R1 is a credit card in good standing, I5 is an installment loan far past due, and R9 is a revolving account charged off. TransUnion and Equifax reports are the ones most likely to show these letter-plus-number ratings.
| Number | Meaning | Read |
|---|---|---|
| 0 | Too new to rateApproved but not yet used, or no history | Neutral – not enough data |
| 1 | Pays as agreedCurrent, on time | Excellent |
| 2 | 30-59 days past due | Minor delinquency |
| 3 | 60-89 days past due | Moderate concern |
| 4 | 90-119 days past due | Serious delinquency |
| 5 | 120 or more days past due | Severe – heading to collection |
| 7 | Wage-earner / debt-management planPaying under a Chapter 13 or counseling plan | Repaying under supervision |
| 8 | Repossession | Collateral taken back |
| 9 | Charge-off, collection, or bankruptcy | Worst rating – written off as a loss |
Do not confuse the two numbering systems
There are two number conventions on credit reports, and they run in opposite directions. In the MOP rating above, a low number is good – R1 means paid as agreed. But in the monthly payment grid in the next section, the number often means days late – so a “1” or “30” there marks a thirty-day delinquency, the opposite meaning. Always confirm which scale you are reading before you judge an account. When in doubt, the report’s legend defines its own codes.
How to Read the Monthly Payment History Grid
Below each tradeline is a payment grid – one marker per month for the past 24 to 84 months. This is the most useful part of the report, because it shows the pattern: whether late payments are old and isolated or recent and repeating. In the grid, a number or label usually means how many days late the account was that month, so here a higher number is worse.
| Grid mark | Meaning | Read |
|---|---|---|
| OK / C | CurrentPaid on time that month | Excellent |
| 0 | Current or zero balance | No issue |
| 30 | 30 days past due | First warning sign |
| 60 | 60 days past due | Pattern forming |
| 90 | 90 days past due | Serious – major red flag |
| 120 | 120 days past due | Likely going to collections |
| 150 / 180 | 150 to 180+ days past due | Charge-off imminent or occurred |
| – / N | No history / no update | Account new, inactive, or nothing reported |
The pattern matters more than one late mark
A single 30-day late payment can drop a strong FICO score by sixty to a hundred and ten points, but a lone slip years ago is not the same as chronic lateness. Multiple late marks across different accounts, or delinquencies within the last twelve to twenty-four months, predict future payment problems far better than one isolated incident. Read the grid left to right and weigh recency and repetition.
Two-Digit Account Status Codes (11, 71, 78 and Up)
Experian-formatted reports and the underlying Metro 2 data often show a two-digit numeric account status code instead of a letter-plus-number rating. It carries the same message on a different scale: the low codes are current, and the number rises with the delinquency until the 90s, which mark derogatory outcomes.
| Code | Meaning | Read |
|---|---|---|
| 11 | Current, paid as agreed | Account in good standing |
| 13 | Paid or closed, zero balance | Obligation fulfilled |
| 71 | 30-59 days past due | Minor delinquency |
| 78 | 60-89 days past due | Moderate concern |
| 80 | 90-119 days past due | Serious delinquency |
| 82 / 83 / 84 | 120, 150, and 180 days past due | Severe – charge-off approaching |
| 93 | Assigned to collection | Debt handed to a collector |
| 96 | Repossession | Collateral seized; a balance may remain |
| 97 | Charge-off / unpaid balance reported as a loss | Worst status – debt still legally owed |
Account Status Labels: Open, Closed, Paid, Settled
Alongside the numeric codes, each account carries a plain-language status label that frames the payment history. These are quick context flags – but “Closed” and “Settled” each hide a positive or a negative meaning, so read them with the tradeline’s history.
| Status | Meaning | Interpretation |
|---|---|---|
| Open | Active account | Current obligation – review its payment history |
| Closed | Account closed | Can be positive (paid off) or negative (closed by the creditor) |
| Paid | Paid in full | Positive – obligation met |
| Settled | Settled for less than owed | Negative – the full balance was not paid |
| Delinquent | Past due | Active payment problem |
| Transferred | Moved to another servicer | Neutral – sold or servicing change |
| Included in bankruptcy | Part of a bankruptcy filing | Negative – discharged or reorganized in bankruptcy |
Derogatory and Negative Codes
Derogatory codes mark the serious negative events in a credit history. They hit the score hardest and are the strongest predictors of payment trouble, so for a landlord they are the items to read first. Each also has a limited reporting life under federal law.
| Item | Meaning | Impact and reporting life |
|---|---|---|
| Chapter 13 bankruptcy | A wage-earner plan repaying debt over three to five years | Reports 7 years from filing; shows an attempt to repay |
| Chapter 7, 11, 12 bankruptcy | Liquidation or reorganization; debts discharged | Reports 10 years from filing |
| Collection account | Debt sold to or handled by a collection agency | Reports 7 years from the original delinquency |
| Charge-off | Creditor wrote the debt off as an uncollectible loss | Reports 7 years; the debt may still be owed |
| Foreclosure | Property repossessed by the lender for nonpayment | Reports 7 years; severe score impact |
| Repossession / voluntary surrender | Collateral taken back, or returned to avoid seizure | Reports 7 years; a deficiency balance may remain |
How Long Do Negative Items Stay On a Report?
The Fair Credit Reporting Act, 15 U.S.C. section 1681c, caps how long negatives may appear. An item older than its limit should not be on a properly maintained report – treat it as a possible data error and do not rely on it.
Seven-year items
- ✓Late payments (30 to 180 days)
- ✓Collection accounts and charge-offs
- ✓Repossessions and foreclosures
- ✓Chapter 13 bankruptcy
- ✓Paid tax liens and most civil judgments
Ten-year items
- ✕Chapter 7 bankruptcy
- ✕Chapter 11 bankruptcy
- ✕Chapter 12 bankruptcy
- ✕The clock runs from the original delinquency, not the report date
A charge-off does not mean the debt is gone
A common misreading: “charge-off” sounds like forgiveness. It is not. A charge-off is an accounting entry – the original creditor has written the balance off as a loss for its own books. The borrower still legally owes the money, and the creditor, or a debt buyer who purchases the account, can still collect on it, including by lawsuit.
Inquiry Codes: Hard Pulls vs. Soft Pulls
The inquiries section lists everyone who accessed the report and when. There are two kinds, and only one affects the score. A hard inquiry happens when someone pulls the report to make a lending decision; it can lower the score by a few points and is visible to other lenders. A soft inquiry – a pre-approval check, a self-check, or many tenant screenings – does not affect the score and is not shown to others.
Why this matters for applicants. Someone applying to several rentals does not want each screening to ding their score. Tenant Screening Background Check uses a soft-pull credit inquiry, so an applicant’s score is not affected by the screening – a real advantage during a multi-property search.
How a Landlord Should Read These Codes
You are not grading a credit report for its own sake – you are predicting whether this applicant will pay rent on time every month. The codes are the evidence; interpretation is the job. Here is the order that matters.
1. Payment patterns beat the score. The month-by-month grid tells the real story. Ask whether late marks are isolated or recurring, recent or years old, and whether they sit on housing-adjacent accounts (a mortgage, utilities) or unrelated ones. A modest score with a clean recent grid can beat a higher score carrying fresh delinquencies. Our guide to setting a minimum credit score shows how to hold the number in context.
2. Read collections and charge-offs closely. These are the most predictive negatives. Utility collections are especially relevant – they are a recurring-payment failure much like rent. Medical collections often reflect circumstance rather than habit, so weigh them more gently.
3. Confirm who owns the good accounts. Use the ECOA codes: an applicant carried by “authorized user” tradelines has not personally built that history. Look for individual (I) and joint (J) accounts paid on time.
4. Combine credit with the rest of the file. Income (aim for roughly three times the monthly rent), employment stability, and prior-landlord references round out the picture. See how to verify tenant income and how to accept or reject a rental application.
Reading a code that drives a denial triggers a legal duty
If a code – a charge-off, a collection, a low score – leads you to deny the applicant, raise the deposit, require a co-signer, or change the lease terms, the Fair Credit Reporting Act (15 U.S.C. section 1681m) requires you to send an adverse action notice. It must name the screening agency, state that the agency did not make the decision, and tell the applicant they may get a free copy of the report within sixty days and dispute any errors. Apply your credit criteria the same way to every applicant, and keep them in writing – our FCRA compliance guide and Fair Housing Act guide cover the duties that run alongside code-reading.
For Tenants: Reading and Improving Your Own Report
If you are the applicant, reading your own codes lets you fix problems before a landlord ever sees them. Start by pulling your free reports from AnnualCreditReport.com, the only federally authorized free source, and check for:
- Errors: accounts that are not yours, wrong payment marks, or incorrect personal details.
- Outdated items: negatives that should have aged off after seven or ten years.
- Duplicates: the same debt reported more than once.
- Paid collections still shown unpaid: these should reflect the payment.
You have the right to dispute anything inaccurate directly with the bureau, which must reinvestigate – generally within thirty days under 15 U.S.C. section 1681i – and correct or remove wrong information. To raise a score before applying: pay revolving balances below thirty percent of their limits, bring delinquent accounts current, avoid opening new credit, and over a longer horizon build history on a secured card or as an individual account holder. If your credit is imperfect, a brief honest note with context, recent on-time history, and an offer of a larger deposit or a co-signer goes a long way.
Red Flags and Yellow Flags at a Glance
Weigh negatives by recency, severity, and pattern rather than by blanket rules. A single old medical collection is a different story from several recent retail charge-offs.
Major red flags
- ✕Recent bankruptcy (within two years)
- ✕Active collections for utilities
- ✕Multiple charge-offs in the past year
- ✕Eviction-related judgments on record
- ✕A pattern of 90-plus-day delinquencies
- ✕A recent foreclosure or repossession
Yellow flags – warrant a conversation
- ✓Older bankruptcy (two to seven years)
- ✓Medical collections only
- ✓Isolated, one-off late marks
- ✓High credit utilization
- ✓Limited or thin credit history
- ✓Student-loan delinquencies
Context is the whole game. Old negatives paired with a clean recent grid usually mean the applicant recovered. Recent negatives across several accounts mean the trouble is current. Read the dates, not just the codes.
Related Landlord and Screening Guides
- FCRA compliance for landlords – the federal rules for using a credit report.
- Adverse action notice guide – the notice a denying code requires.
- Minimum credit score for renting – setting a defensible score standard.
- How to screen tenants – the full step-by-step workflow.
- How to verify tenant income – the financial side of qualifying.
- How to accept or reject a rental application – deciding defensibly.
- Fair Housing Act guide – anti-discrimination duties alongside credit.
Screen Tenants With Reports That Read Clearly
Our tenant screening reports translate the codes for you – clear credit, criminal, and eviction data with a soft-pull credit inquiry and FCRA-ready adverse action support, so you can decide with confidence.
Credit Report Codes: FAQ
What does R1 mean on a credit report?
In the classic rating system a code is a letter plus a number. The letter is the account type – R for revolving (credit cards), I for installment (auto and student loans), O for open, M for mortgage. The number is the payment rating from 0 to 9. R1 therefore means a revolving account paid as agreed, on time. I3 means an installment loan that reached 60 to 89 days past due. The higher the number, the worse the payment history.
What are ECOA codes on a credit report?
ECOA codes come from the Equal Credit Opportunity Act and show who is legally responsible for an account. I or 1 is an individual account the person alone owes. J or 2 is a joint account. A or 3 is an authorized user who can use the account but is not liable for it. C is a co-maker or co-signer. M is the maker or primary borrower. For a landlord this matters: if an applicant’s only strong tradelines are marked authorized user, that good history may belong to someone else.
What is the difference between account status code 11 and 71?
These are two-digit numeric account-status codes used in the Metro 2 reporting format. Code 11 means the account is current and paid as agreed. Code 71 means the account is 30 to 59 days past the due date. As the number climbs the delinquency deepens – 78 is 60 days, 80 is 90 days, 82 is 120 days, and codes in the 90s such as 93, 96, and 97 signal collection, repossession, and charge-off.
How do I read the monthly payment history grid on a credit report?
The payment grid shows one marker per month for the past 24 to 84 months. A current, on-time month usually shows OK, C, or a zero. A number or a days-late label such as 30, 60, 90, 120, 150, or 180 marks how many days past due the account fell that month. Read the grid left to right to see whether late payments are old and isolated or recent and repeating – the pattern predicts rent reliability better than any single mark.
What credit score do landlords look for when renting?
Many landlords set a minimum FICO score of about 600 to 650 for standard rentals, and 700 or higher for premium or competitive properties. But the score is only one data point. An applicant with a modest score and a clean recent payment history can be a stronger tenant than a higher score carrying recent delinquencies. Read the codes and the payment grid, not just the number.
How long do negative codes stay on a credit report?
Under the Fair Credit Reporting Act, 15 U.S.C. section 1681c, most adverse items report for 7 years – late payments, collections, charge-offs, repossessions, foreclosures, and Chapter 13 bankruptcy. Chapter 7, 11, and 12 bankruptcies report for 10 years. The seven-year clock runs from the original delinquency that led to the item, not from when it was reported.
Does a tenant screening credit check hurt the applicant’s score?
It depends on the pull type. A hard inquiry can shave a few points and shows on the report. A soft inquiry does not affect the score and is not visible to other lenders. Tenant Screening Background Check uses a soft-pull credit inquiry, so an applicant screened through the platform keeps their score intact even while applying to several properties.
What does a charge-off code mean – is the debt gone?
A charge-off – shown as a 9 in the rating scale, 97 in the numeric status codes, or a charge-off label – means the original creditor wrote the balance off as a loss for its own accounting. It does not mean the debt is forgiven. The borrower still legally owes the money, and the creditor or a collection agency that buys the debt can still pursue it, including in court.
What should a landlord do after a credit report code drives a denial?
If a code such as a charge-off, collection, or low score leads you to deny an applicant, raise the deposit, or require a co-signer, the Fair Credit Reporting Act, 15 U.S.C. section 1681m, requires you to send an adverse action notice. It must name the screening agency, state that the agency did not make the decision, and tell the applicant they can get a free copy of the report within 60 days and dispute any errors.
Published by Tenant Screening Background Check · Editorial Team
Established 2004. Our editorial team has spent two decades helping landlords and property managers read credit and background reports and run lawful, FCRA-compliant tenant screening across all 50 states. We translate the codes and the federal rules into a process you can actually follow.
Legal Disclaimer
This guide is for general informational purposes only and is not legal advice, nor is it financial or professional advice. Credit reporting is governed by the Fair Credit Reporting Act (15 U.S.C. section 1681 et seq.), and code conventions vary by bureau and by the report’s format. Reporting time limits and code meanings can change, and how they apply depends on your specific facts. For questions about a specific report, contact the credit bureau directly; for legal questions about tenant screening, consult a licensed attorney in your jurisdiction. Reading this page does not create an attorney-client relationship.
