Understanding Credit Report Codes
Understanding Credit Report Codes
Reading portions of a credit report can be difficult or confusing to understand unless you know what the various codes mean. While it might be helpful in some cases to decipher the various codes, you should be able to very quickly scan the report and easily identify any delinquent accounts and collection accounts. These type of accounts generally signify financial issues and can serve as a warning to landlords that this applicant may have an unsatisfactory track record to qualify.
Keep it Simple
Don’t try to over complicate the process of determining your applicant’s reliability for making timely payments to creditors. Quite often, a low FICO score is accompanied by a series of delinquencies, collection activity and (in some cases) charge-offs. After unsuccessful collection, the creditor has the choice of either pursuing a judgment or basically giving up and writing off the account.
FICO Credit Score
Score Risk
340 to 500 worst risk
501 to 550 high risk
551 to 600 medium to high risk
601 to 650 medium risk
651 to 700 medium to low risk
701 to 820 low risk
*The above risk assessments are based upon generally accepted standards in the industry.
Payment History
C | Current |
N | Current account/zero balance-no update tape received |
0 | Current account/zero balance-reported on update tape |
1 | 30 days past the due date |
2 | 60 days past the due date |
3 | 90 days past the due date |
4 | 120 days past the due date |
5 | 150 days past the due date |
6 | 180 days past the due date |
7 | Bankruptcy Chapter 13 (Petitioned, Discharged, Reaffirmation of Debt Rescinded) |
8 | Derogatory, e.g. foreclosure proceeding, deed in lieu |
9 | Bankruptcy Chapter 7, 11, or 12 (Petitioned, Discharged, Reaffirmation of Debt Rescinded) |
G | Collection |
H | Foreclosure |
J | Voluntary Surrender |
K | Repossession |
L | Charge-off |
B | Account condition change, payment code not applicable |
– | No history reported for that month |
| No history maintained |
Download “How to Understand Credit Report Codes
Here is a PDF file that may help you understand and interpret the meaning of the various codes that are used in a tenant credit report.