Reason Codes: What They Mean for My Credit Score – Episode #109

February 4, 2009 by  
Filed under Episodes

What is a Reason Code on a Credit Report?

Because credit reports have a history of being cryptic, regulators asked the credit reporting agencies to provide a summary of sorts, reasons why your credit isn’t higher. When credit reporting agencies started to market their products to consumers, they started to provide 4 negative reason codes and 4 positive reason codes to consumers.

How Do These Impact My Credit Score?

The problem: these codes can often be confusing themselves. They often tell a consumer something vague, like you “opened too many credit lines recently” without telling you exactly how many points that cost you. Why don’t they tell you this? They are concerned that the credit scoring algorithm could be reverse engineered. This is a valid concern [sorry all] but don’t feel lost, you can usually see from the codes what steps might make sense.

01 Amount owed on accounts too high Reduce current account balances to below 30% of credit limits) 22 Serious delinquency, derogatory public record or collection filed Settle this and request goodwill removal
02 Level of delinquency on accounts too high Pay your bills on time 23 Too many bank or revolving accounts with balances
(Equifax only)
Reduce the balances and carry balances on only a few cards
03 Too few revolving accounts
(Trans Union #33)
Open more revolving tradelines,and keep them active 24 No recent revolving balances Use at least some of your revolving cards. NO need to carry a balance, just use it and pay in full.
04 Too many revolving accounts (Trans Union n/a) Close newest credit card accounts first 26 Number of revolving accounts
(Trans Union NA)
Use just some of your revolving cards. NO need to carry a balance, just use it and pay in full.
05 Too many accounts with balances Limit activity to only a few accounts, and pay off other accounts 27 Too few accounts paid as agreed
Trans Union only)
Pay off your cards. Bring them up to date.
06 Too many consumer finance accounts Pay off consumer finance accounts on time, or preferably in advance 28 Number of established accounts
(Equifax & Experian)
Normally, I don’t suggest closing cards, but fyi, 800 score people have 10 accounts not 50 accounts
07 Account payment history too new to rate Wait 6-12 months to reapply 28 No recent bankcard balances
(Trans Union only)
Use your cards. Pay in full. No need to carry a balance as balance is reported as “closing date” not “due date”
08 Too many recent account inquiries in last 12 months Ask credit guarantors to consolidate or remove inquiries 30 Time since last account opening too short Time heals. A longer account history is required
09 Too many accounts opened in last 12 months Stop opening accounts.  People who open too many accounts are riskier 31 Too few accounts with recent payment info.
rans Union n/a)
Use your cards, but pay them off in full
10 Proportion of balances to credit limit too high on revolving accounts Reduce revolving credit balances to a lower proportion of credit limits. Aim for <30%. 10% if you are shooting for an 800 32 Lack of recent installment loan information (Trans Union #4) Request credit grantor to update information
11 Amount owed on revolving accounts too high Keep $ amounts owed lower. Preferably less than $5,000. 33 Proportion of loan balances to loan amounts too high
Trans Union #3)
Maintain balances below 30% of credit limits
12 Length of revolving credit history too short Improve credit usage for 6 months and recheck 34 Amount owed on delinquent accounts
Trans Union #31)
Reduce or eliminate all past due balances
13 Length of time (or unknown time) since delinquency Time heals. You have to wait 6 months and recheck. Note: that delinquencies stay on for 7 years 35 Payment due on accounts
(not used)
Pay past due balance
14 Length of time revolving accounts have been established Wait 6-12 months to reapply 36 Length of time open accounts have been established
(not used)
Time heals.
15 Lack of recent bank revolving credit information Mixture of credit matters. Make sure you have bank credit cards 37 Number of consumer finance company accounts established relative to length of history. Time heals. Don’t open more consumer finance loans.
16 Lack of recent revolving account information Wait 6-12 months to apply or reapply 38 Serious delinquency and public records or collections filed Settle delinquent debts, liens, or judgments
17 No recent non-mortgage balance information Need credit and/or installment credit 39 Serious delinquency and public record or collection filed Settle delinquent debt, lien, judgment, or collection
18 No. of accounts with delinquency
(or Frequent delinquency – Trans Union)
Multiple delinquencies need to be brought current and properly maintained 40 Derogatory public record or collections filed Settle derogatory debt, lien, or judgment
19 Too few accounts paid as agreed
(Trans Union #27)
Pay your bills on time and in full 47 Number of consumer finance inquiries Stop applying for consumer finance credit. Time heals.
19 Date of last inquiry too recent
(Trans Union only)
Wait a few months. This will disappear. Recent inquiry adversely influences scores. 97 Lack of recent auto loan information Request creditor to update account information
20 Length of time since legal item filed (derogatory public record) or collection reported Time heals. These will fall off in 7 years. No action needed. 98 Length of time consumer finance company loans have been established Time heals. Pay as agreed or ahead of schedule to get these paid in full.
21 Amount past due on accounts Pay past due balance 99 Lack of recent consumer finance company account information Request consumer finance company to update account information

I realize the chart above is a little daunting. So don’t worry about it. Just know it’s here for you if you want to check it. Most actions needed are really common sense. Pay your debts, be on time, keep balances low. Time can heal all wounds.

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61 Responses to “Reason Codes: What They Mean for My Credit Score – Episode #109”

  1. Geoff on October 22nd, 2009 12:56 pm

    Hi, on my Transunion credit report I have old student loans with a balance of 0. These are rated – I0 – TOO NEW TO RATE

    Should this be of any concern to me?

  2. VideoCreditScore-Andy on October 26th, 2009 5:43 pm

    Old student loans with a balance of zero are a good thing. Credit scores like old accounts with balances of zero or paid in full. The best FICO score holders usually have a bunch of paid off loans.

  3. Alexander on November 7th, 2009 3:15 pm

    I have 7 open credit cards, and a total available credit of $100,000. I paid down some of the credit cards recently, and now have a total of $33,000 in credit card balances. Three of the credit cards have balances of 70% to 90% of the total credit line. The other four have either no balance or a balance of less than 10%.

    (Yes, I’ve been playing the 0% balance transfer game, which I’ve still been able to play despite the changes in the economy and credit card policies, although now I often have to pay a 3% balance transfer fee).

    I have a perfect payment history going back over 20 years – I never miss a payment.

    I also have a mortgage of $105,000 (on a $350,000 house) and a home equity line with a $40,000 limit on which I owe $24,000.

    I’m going to apply for one or two more 0% credit cards soon. My question is whether it will look like I have too many credit cards and too much potential credit. I have three cards that are essentially unused with credit lines of $24,500, $20,000 and $5,000, respectively. Am I going to look better to the credit card companies if I keep these open, shut them down, or should I ask them to reduce the credit lines?

  4. VideoCreditScore-Andy on November 7th, 2009 10:14 pm

    Don’t ask for reduced lines, and don’t close down credit cards. These actions will hurt your credit score. If your total open cards exceeds 10 cards, you might get dinged on your score, but it sounds like you have fewer than 10 cards. The people who get dinged tend to have 15-20 cards. But, make sure you have an end game to stop the 0% rollovers, which is sounds like you have. Great work! :)

  5. Alexander on November 23rd, 2009 4:52 pm

    Received a rejection letter today from Capital One, with a code that isn’t in the above list:

    New account balances are too low (Equifax).

    PS: The last time I opened a credit card was in October of 2008. My FICO score on Equifax was 774 as of last week.

  6. VideoCreditScore-Andy on November 23rd, 2009 8:28 pm

    Haven’t seen that one. Is there a code number? Can you scan it and email it me at info {at] Note there are positive and negative reason codes so we should make sure these are negative codes.

  7. Paul on December 10th, 2009 2:32 pm

    My credit scores from Equifax, Experian etc. show a code of amount owed on accounts is too high. I don’t have any debt besides my mortgage which is low. No car payments, credit card debt etc. I pay off all of my balances every month and I have more cash in the bank that what I owe on my mortgage. What gives?

  8. VideoCreditScore-Andy on December 11th, 2009 12:12 pm

    Credit scores can’t see how much you have in the bank. If you mortgage is high at all, you get this code. I get it for living/owning in California. No way to get rid of it until you pay down your mortgage significantly. It doesn’t usually weigh heavily on the score.

  9. David on February 9th, 2010 1:34 pm

    Hey Andy, to your last point, I also live in California and get the same response for my mortgage. My score is around the 800 mark, so I’m not terribly disappointed with that, but I can’t seem to get a credit card right now because if it. What percentage of my loan do I have to buy down in order to remove myself from this bucket? I have cash on hand that I could buy down the loan with, but I’m not sure whether or not that’s really worth it at this point just to get a credit card that better suits my needs. Thoughts?

  10. VideoCreditScore-Andy on February 9th, 2010 1:40 pm

    This may not really be the reason you can’t get a credit card right now. The banks are just really tight with handing out new credit. I wouldn’t pay this down just to get a credit card. Perhaps consider using debit cards for 6 months and reapplying. Also, did you apply for a credit card from the same bank you have your savings/checking accounts? We have returned to the age where relationships matter and you may get an approval there.

  11. David on February 9th, 2010 2:57 pm

    Thanks for the prompt response! I’ve heard similar reasoning in regards to credit being tight, but I always figured I’d be a prime safe decision for a lender based on income, cash reserves and lack of debt outside of said mortgage. I have a credit card that is perfectly acceptable, I was just looking to add some arsenal that would better suit me in regards to rewards/returns. The upside of buying down my loan just isn’t there for me right now, so it’s probably a path I’m not going to go down at the moment, but out of curiosity, is there a general percentage of debt to loan amount that I would be looking to target? I’ve heard to keep it below 80% at very least, but I don’t know if that number holds water for any reason.

  12. VideoCreditScore-Andy on February 9th, 2010 3:04 pm

    I haven’t heard of a debt to loan amount on the mortgage side for an ideal credit score. I do know that once you pay it off in full, your score will jump again. I’d just let time take care of this.

  13. Myles on July 17th, 2010 8:35 am

    My transunion score dropped to 618, (reason 46 “Lack of satisfactory morgage history) I paid off a mortgage about 12 yrs ago, and am a disabled single guy with no need to own another house. My debt to credit ratio is a bit high (60%), probably too many accounts with balances, but have not ever paid late or missed payments and am presently paying amounts sufficient to pay off all the accounts within the next 2,5 yrs.. there is absolutly NO derrogatory history on my record. Am am not chrging ANYTHING more to the accountsm, as I am determined to free myself from these pirates. However, the low score increases the amount I pay for insurance, car loans, etc. and makes it more difficult to lease exceptable places to live. Given the brief history stated above, shouldn’t my score be close to 700?

  14. VideoCreditScore-Andy on July 25th, 2010 5:04 pm

    A 60% CUR or credit utilization ratio is probably hurting you the most. Lots of people without mortgage history have 800+ credit scores. Check out this post on credit score factors. Amounts owed is a critical factor, so you know what’s next. You need to figure out how to lower your CUR. That will help you get your score back up. One strategy I do is to pay off credit cards 2x per month vs. once. Essentially matching the payments to when I get paid helps lower the debt load reported. Keep at it and your score will be back over 700 in no time.

  15. Adam on August 2nd, 2010 4:32 pm

    Hey Andy, I just got a credit score release from a mortgage application and I have a slight question regarding the Transunion scores listed. They have an itemized list of 4 factors that hurt the scoring 014, 003, 030 and 011. The first three most likely relate to me refinancing an auto loan last week (about 2 weeks after my application for the mortgage). The final one 011 is listed as “Amount owed on revolving accounts is too high”. What exactly does this mean? I only have my auto loan, a debit card, and a single credit card. This card has a 7,500$ credit limit and has never had an end of month balance in the two years I’ve had it established. My credit rating is 748, so I’m not overly concerned with it in the aggregate (afterall, I am only 23 years old), however should I look into this error code? (If it matters, the highest balance I’ve had on that card in the last month was around 150$). Thanks!

  16. VideoCreditScore-Andy on August 6th, 2010 5:53 am

    “Amount owed on revolving accounts is too high” means that the balance at the statement date, not the due date is too high as a percentage. This means that you are usng to high a percent of the balance. Here’s one trick. Payoff your cards every paycheck. This will reduce the amount on the statement date, and that will make your ratio of balance owed/total go way down. See my post on increasing your score through reducing your amounts owed reported. Your goal should be to get amounted owed reported to look like 10% of your credit available.

  17. Adam on August 6th, 2010 6:28 pm

    I appreciate taking the time to answer my question on 8/2/10. Unfortunately, I was concerned about fraudulent activity. My credit balance on my ONLY card (that I know of at least) is 7,500. I’ve never used more than 110$ of it, ever. That’s less than 2% of available credit, which is why I was concerned about the “Amount owed on revolving accounts is too high” the only other debt I have is an auto-loan that was refinanced the week before I received that credit report, thus no payment has been made. I’m really confused about how 2% credit utilization is “too high” or if I should be concerned about identity fraud. I’ve had to have my debit card cancelled this year already because someone stole the number and began fraudulent charges in another state.

  18. VideoCreditScore-Andy on August 10th, 2010 7:56 pm

    Hmmm. Seems like a tough one without seeing your credit report. If the balances reported look low, you are probably fine. Sounds like the “revolving accounts too high” reason code is not really right for you. Especially if you have a 748 score. If you are worried about fraud you can set a 90 day fraud flag at

  19. Roni on October 28th, 2010 6:57 pm

    I was just denied a “revolving charge request” (a 6-month same as cash request) due to “amount of unused bankcard credit limits”. What exactly does that mean and how can I rectify this? I currently have no balances on any credit cards (just paid off an $1800 MasterCard balance) and only have my mortgage payment which is automatically withdrawn from my checking account so is never late. I have taken advantage? of “6 months same as cash” transactions several times in the past through Best Buy and Furniture Row and paid the balances off before the end of the 6-month time period. Have those transactions hurt my credit? Thank you in advance.

  20. VideoCreditScore-Andy on November 3rd, 2010 11:41 am

    This is a new one sneaking up on people. This has changed just in the last 2 years. It appears to be a good idea to keep using your cards, even if just one transaction per month. This keeps the banks from closing down unused cards or given you the “amount of unused credit limits” is too high. You may be getting a amount of unused credit limit is too low, but that comes from maxing out your cards. Have you ordered your Score Report yet?

  21. Nicole on November 9th, 2010 5:08 pm


    I applied for the Capitol One Visa Signature No Hassle Rewards Card. I would like this card because it has no foreign transaction fees and I am about to go travel overseas.

    I have a sterling credit score. I have 3 reports from the last year that shows my credit score is over 700. I always pay my bills on time and in full. I have no loans and no debt and no bad marks on my credit report.

    To my surprise, I was denied the card. There is an address that you can send a letter to dispute the rejection which I would like to do. Before I do that I need to better understand a few of the reasons I was rejected.

    -Based on the credit report from Equifax, credit limits are too low.
    -Based on the credit report from Experian, revolving credit balances are too low
    -Based on a credit report from Trans Union, applicant is not a homeowner
    -Based on a credit report from Equifax, there has been insufficient pay down of mortgage accounts.

    To answer to the first rejection – I called my current CC – Citi Mastercard. My credit limit is 10,000. This is higher than all my friends that have the card. According to Capitol One a 10,000 limit is high enough. I do not understand.

    To answer to the second rejection about credit balances being too low. I average 1-3k on my CC every month. I pay it in full every month. How can this hurt me? Is there something I can say to them in the letter to them?

    To answer to the third rejection bullet point, it is true I am not a homeowner. The Capitol One representative said I do not need to be a homeowner for this card. My friends that have the card and applied on the same day – in the same hour for this card – do not own homes. Somehow they were granted the card. I do not understand.

    To answer to the forth rejection point, I do not have any mortgages – neither do my friends with the card.

    I would appreciate any advice you may have about steps I should take to remedy this situation.

    Many Thanks,


  22. Sean on November 12th, 2010 8:59 pm


    Does this mean I still owe money even if I have a zero balance?, I am very confused.

  23. Jennifer on November 14th, 2010 12:01 pm

    I applied for a Capital One credit card and was denied saying, “proportion of revolving account balance(s) to income is too high.” What is a revolving account and what does this statement mean?

  24. VideoCreditScore-Andy on November 23rd, 2010 6:41 am

    It means your balances on the statement date are too high. There are two important dated to remember. One is the due date and the other is the statement date. Even if you pay off in full each month. If you use your card for $2000 of purchases an only have $3000 in available credit line you look risky. Even I you pay in full. One thought. Pay your credit card off on every payday. That should reduce the likelihood of the balanced too high flag

  25. Jennifer on November 23rd, 2010 6:33 pm

    I’m still a little bit confused. I’m very new to this and I’ve never had a credit card before so I don’t get how I would have a statement date? I’m a current college student and part time waitress if that helps any bit. Thank you!

  26. VideoCreditScore-Andy on November 29th, 2010 7:07 am

    Jennifer. Credit card companies think you are risky I you use too much available credit. If you have a credit limit of $1000 and you for example charge $900 of purchases even if you pay off in full your score will suffer as people who max out tend to stop paying off bills and leave the credit company with a loss. The trick is to use only 20 percent of your credit limit and use cash for most things. At the same time look to build your history by getting a new card and/or asking your credit card company to raise your limits. This is easier done once you build 6 months of good history.

  27. Rahul on December 29th, 2010 10:29 am

    I got denial letter while applying for AMEX Blue Cash Card showing following reasons: Equifax: 1) Length of time accounts have been established 2) Proportion of loan balances to loan amounts is too high 3) Too many accounts with balances 4) Too many inquiries last 12 months. I have been in US last 1.5 years. I have 2 credit cards from bank and 2 from shopping (like Macy) with total less than $3500 credit limit. I also have auto loan of $10k. I am planning to get free credit report after completing 2 years in USA. I am using 60-70% of credit line and regular in paying off all bills till date. But based on above, what do you suggest for improving credit score and lowering such denial?

  28. MJ Jones on January 11th, 2011 5:45 pm

    Hi, Andy – I have a question about a TransUnion score update. This year, I’ve taken the challenge of paying down debts like crazy and have virtually achieved a goal of getting all balances on bankcards to <35%. TransUnion updated my score – which is GREAT, but still cite the following reasons – REASON 48 (too few active mortgage accounts), REASON 68 (Total account balances excluding mortgages is too high), REASON 06 (Bankcard account balances are too high in proportion to credit limits), and REASON 41 (Too fee recently opened bank installment loans). For reasons 68 and 06 are being corrected, but what gives with reasons 48 and 06? I have an installment loan for my car and it's been paid perfectly, but I'm being viewed negatively because I don't have a mortgage??? HELP please. Thanks!

  29. DLC Medina on January 26th, 2011 2:43 am

    Hello I’m trying to rebuild my credit and I have my online school that I paid off and on both experian and equifax it states paid and then on transunion it says “automated accounts” I didn’t see this on the above graph so I’d thought I’ll ask you. Also I have a medical bill which says “joint” and on the bottom of the that it also say “automated accounts” can I dispute this to where I can have it removed from my credit?

  30. VideoCreditScore-Andy on January 26th, 2011 6:01 am

    MJ. These reason codes can drive anyone bananas. The reality is people with a mortgage tend to be less risky. That said. When I was a renter, my score was 831 and now with a mortgage it’s around 800. Go figure. People who get codes that make little sense tend to have pretty good scores. You are doing the right things. Get your credit utilization down to 10% and you should have a good score.

  31. VideoCreditScore-Andy on January 26th, 2011 6:14 am

    Rahul. Did you check out this post? Expats and Credit Scores.

    You need time and a few steps mentioned above and keep your credit usage to less than 10% of limits.

  32. jay on February 1st, 2011 7:02 pm

    I just applied for MBNA the reason code is “lack of established revolving credit refrences.” what does that mean? and whats the solution to it?

  33. VideoCreditScore-Andy on February 2nd, 2011 8:32 pm

    This means you don’t have any credit cards, or not enough. MBNA is afraid to be your first, or one of your first. Often you can get an installment loan with a big bank, and then apply 6-12 months later for a credit card from that same bank. They are more likely to accept your app based on the same bank record of payment.

  34. VideoCreditScore-Andy on February 2nd, 2011 9:08 pm

    You can try to dispute these. Sounds like you will have a good likelihood of success given 2 of your reports have the right information. Check my credit resources section for info on how to do a credit dispute letter

  35. Rebecca on March 9th, 2011 7:38 am

    lack of recently reported established accounts

  36. Alan on April 18th, 2011 7:23 pm

    I received some conflicting reason codes. Based on the information I have read above…how can I have 1 reason code that says: “Amount of Unused Bankcard credit limits”….and then another reason code in the same letter that says: “# of REV ACCTS WITH BALANCE>= 50% OF HIGH CREDIT” ?

    Basically what they are saying is “We denied you credit because you aren’t using your cards enough. We also denied your credit because you are using your cards too much.” WTF?



  37. algie harris on September 10th, 2011 1:46 pm

    i got a letter from equifax statting lack of recently reported established accounts ipay all of my bills on time never been late on anythig i was turnd down for a home projects visa card my credit score 814.

  38. VideoCreditScore-Andy on September 21st, 2011 1:24 pm

    How many accounts do you have? That may explain the “lack of recently reported accounts”.

  39. Tonya Fazio on October 9th, 2011 8:43 pm

    My Trans Union Credit score just dropped 13 points from Sept to Oct due to “Too few premium bank accounts” and “too few satisfactory accounts”. The only change made since Sept was to increase the available balance on one FIA charge card by decreasing another FIA charge card which we barely use. Could this have triggered the “too few satisfactory accounts” reason? That was the only additional explanation on Trans Union.

  40. VideoCreditScore-Andy on October 19th, 2011 10:22 pm

    Sadly, this “too few accounts” is often an enigma. I would just watch to see if you gain 10 points back in the next few months.

  41. Ginger on November 3rd, 2011 9:12 am

    All 3 scores are 800 or above but I have reasons like; Too many Consumer Finance Company Accounts and Too Many Accounts Opened Recently. We have one credit card, a Lowe’s card and a car loan. i just applied for a home loan and got the credit scores. I know the scores are high but I’m worried what these resons mean? Should I have a full report to see open accounts?

  42. VideoCreditScore-Andy on November 6th, 2011 10:34 pm

    I wouldn’t worry about it. Sleep well, knowing your 800+ scores are great.

  43. mari on January 6th, 2012 1:50 pm

    hi Andy, I belong to credi tkarma, and my score was at 724.

    recently, I asked Discover to increase my limit, also asked them not to pull credit.
    I was denied. I received a letter of explanation stating:

    FICO Score 663

    Key Factor 1 Serious Delinquency
    Key Factor 2 Time since delinquency too recent or unknown
    Key Factor 3 Proportion of loan balances to loan amounts too high
    Key Factor 5 Number of inquiries on credit burea.

    My score at Credit Karma was 724, updated my info, it is now 719.

    The only changes were paying down small amounts on2 credit cards that were under $100. Credit

    and charging $900 on one card. No other changes.

    I am still at 18% of all available balances.

    I have no delinquencies, no negatives or negative remarks.
    so where does Key factor 1 and 2 come from?

    and how can my score drop 9 points with only one charge of $900
    as the only change? the available balance on the $900 charge
    is over $4,000.

    and why is the score only ‘663’ given to Discover,
    when my score is 715 online?

    thx mari

  44. Jmaga002 on March 11th, 2012 8:29 pm

    I recently attempted to increase the credit limit from one of my credit cards, but I got the following:

    Number of accounts delinquent.
    Proportion of loan balances to loan amount is too high.
    Length of time accounts have been established.
    Delinquency date too recent or unknown.
    Too many inquiries in the last 12 months

    On a credit report i obtained about a month ago, all of me accounts were in good status.

    My dad’s name is the same as mine, can his credit be confused with my credit score?
    How can I take care of these? Thank you.

  45. VideoCreditScore-Andy on March 12th, 2012 1:47 pm

    You would know if your credit report is confused with his as you would see his accounts. But, it could be that the credit card company pulled the wrong credit report for the application. You should contact them and see if you can have your application rereviewed since they may have used your dad’s credit file. Too many inquiries in the last 12 months is from someone applying for a lot of credit cards in a short amount of time. him or you?

  46. dara childs on May 16th, 2012 11:27 am

    My credit report came back with codes 39, 13 & 02. These all deal with delinquincies. I negotiated 2 short sales 12 & 18 months ago. I was never delinquint though. Paid timely until properties were sold and title transfered at closing. About 8 weeks ago I realized that they were actually being reported incorrectly. One of them did not show a zero balance. I had that fixed. Credit scores went up and everything looks good. 0 balances. paid in full. no deliquincies, etc. If you go to the notes you see “settled for less than amount owed”. They never reported delinquincies though. My question is can I insist that the agencies remove those factor codes? Do I write a letter? Its not a normal dispute. I’m not disputing something someone is reporting. I feel like I am disputing the agencies interpretation of events. How can they reference a delinquincy when there never was one?

  47. dara childs on May 23rd, 2012 4:32 am

    I have codes 39, 12 & 03 on my report. These all relate to dilinquincies. I don’t have any dilinquincies and never have. I do have 2 short sales. These accounts were however paid timely until the closing and title was transferred to the new owner. Is there any recourse for having the agencies remove derogatory codes that are not correct?

  48. Denise Bahler on June 25th, 2012 12:18 pm

    I recently re-mortgaged my home (May), and I just purchased a 2011 vehicle (June). My credit score is 846 and the creditor of my vehicle is approving the loan at different terms than were oiginally requested the reasons: insufficient open recent satisfactory installments, and excessive inquiries in credit file.

    If my score is high, what is the problem?

  49. VideoCreditScore-Andy on July 29th, 2012 12:51 pm

    846 isn’t your FICO score. Get your FICO score from the lender to understand where you are. Ask specifically what’s changed. If your score declined from the time you appled to the time you locked in, that might explain the rate different. Excessive inquiries in the credit file is a timing issue. You applied for the car loan right o the heals of the refi. That’s no longer really ideal is today’s market. If you had waited a few months this wouldn’t be an issue, as the excessive inquiry item soon will fall off.

  50. VideoCreditScore-Andy on July 29th, 2012 5:01 pm

    Dara, apologies… i think I had a wordpress snafu.

    First for others here are the code descriptions

    39 – Serious delinquency and public record or collection filed
    13 – Length of time (or unknown time) since delinquency
    02 – Level of delinquency on accounts too high

    These factor codes should not show up if you had the tradelines amended via the dispute process. If you have no tradeline that has a delinquency, then you shouldn’t recieve those tradelines. That said, there are countless examples of reason codes that lack “reason”. Sadly, there’s no way to dispute a reason code. You can only dispute the data in your file. Make sure you don’t have any tradelines that imply a delinquency.

    Sorry, until the government regulators jump on this, it’s not likely to change.

  51. VideoCreditScore-Andy on July 29th, 2012 5:01 pm

    Did I answer this well enough from your post from the week before?

  52. Yoni Garcia on August 18th, 2012 10:24 pm

    I’m 19 years old.I got rejected for a citi student forward card with the following reasons:

    Proportion of loan balances to loan amounts is too high.
    Too few accounts currently paid as agreed.
    Lack of recent revolving account information.
    Length of time accounts have been established.

    Also i dont have loans. Im a student that dosent work and lives with his parents. I just a have a citi student checking account.This is the first credit card I apply for. What can i do?

  53. Judi Chason on November 17th, 2012 11:26 am

    030 time since most recent account opening is too short. I bought a car in March through my credit union and is paid through them each month on time. 005 too many accounts with balances. I owe on my mortgage, the car and have a balance of $350 on visa. All other cards are 0 balance, I use them each 6 months. my last score from Transunion was 804. Neither Transunion or Equifax had me in their system although I have had good credit for many years. I am trying to refinance my home. Thanks.

  54. VideoCreditScore-Andy on November 24th, 2012 7:53 am

    Judi. Reason codes are often a bit misleading, especially, for people with scores over 800. They often seem mysterious. You are doing well. Try ot get your $350 balance paid off. That may help your score. Contact TU and EFX by phone. It could be that they have you in there system under a variant name. It’s worth a call as you should definitely be there if you’ve had credit for years.

  55. VideoCreditScore-Andy on November 24th, 2012 8:04 am

    Yoni, my recommendation is to get a personal loan – yes, even if you don’t need the money – to build some credit history. This loan could be for $500. Get it through the same bank as your checking account. This is Citi in your case. Keep that loan open for at least 6 months, making payments on time. After six months, you can pay it off and close down the loan. It will still be on your credit file. Then, apply for a secured credit card. You could try this first, too, talk to your bank. To learn more about these check out What is a Secured Credit Card? How Can it Help My Credit Score? – Episode #21

  56. Angie on May 2nd, 2013 11:27 pm

    So I have a question here… You seem to be a guru of sorts :) So my fiance and I got an apartment together and it got approved (yay!) however, we both got letters telling us our credit scores, the positive and the negative… So my question specifically relates to my credit score possibly getting a bit lowered (it’s not too bad, I’m in the 700s) however, I have an account at a bank and haven’t used it in years! Would that be a problem???
    And the reason I didn’t use it was that I originally opened an account at that bank because my student loans were there, however, after the government took all of the student loans, I was in no more need for that bank, and I think that I forgot about it. :/ woops!

  57. VideoCreditScore-Andy on May 5th, 2013 6:03 am

    You haven’t used your bank account in years? Not to worry, that should not impact your credit score. Similarly, old credit cards that you don’t use don’t negatively impact your credit score. With a bank account, if you don’t use it, you might as well close it down as it won’t impact your score if you do so. Best, Andy

  58. VideoCreditScore-Andy on May 17th, 2013 9:01 pm

    Mari. I am a fan of creditkarma. But they use a different scoring model and sometimes their scores don’t come close to the FICO scores that lenders and credit card companies use. If you don’t have late payments and low balances you should have a FICO in the 700s. Double check that evything is accurate. Dispute anything that isn’t. Best. Andy.

  59. selene on December 8th, 2013 8:27 pm

    i applied for a car loan and got denied for these reasons i dont understand

    Lack of recent installment loan information
    Proportion of balances to credit limits on bank/natl rev accts or other rev accts too high
    Length of time accounts have been established
    Too many inquiries last 12 months
    Too many consumer finance company accounts

  60. Nancy E. Harrinton on April 27th, 2014 12:27 pm

    My credit scores are all over 700 but I do not understand the comments; too many personal credit cards, too few premier credit cards, and too few mortgages. I have 3 credit Visa or MC with balances over $10k, a VA mortgage on my home paid automatically from my account so never late. Does that mean I should take ot more mortgages. Tyre credit bureau already uses the mortgage balance as a revolving credit account. Would ‘nt that make my credit worse. I owe very little on an auto loan and I do not charge anymore than I can pay off when the monthly billncomes in. The less I owe the lower my credit score goes. I do not understand.

  61. VideoCreditScore-Andy on April 27th, 2014 7:20 pm

    Don’t take out more mortgages. Sometimes the system is a bit of a mystery. My guess is the thing keeping you from a score over 740 or so is the balances over $10K. One major factor is the your ratio of credit used/credit available. Ideally these are lower than 10%. I’m guessing yours is more like 30%. The mortgage should not be a revolving credit. It should be installment credit. Sometimes I try to pay off 2x per month to lower the amounts too. Keep at it, you are in good shape and just need to work those CC balances down. :)


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