What Does a Remark Code Mean on a Credit Report?

Remark codes on a credit report are specialized notations that provide additional context about specific accounts or events within an individual’s credit history. These short alphanumeric or textual indicators offer a deeper understanding of credit file entries, extending beyond basic account status. Understanding these codes helps consumers comprehend the detailed information within their credit reports.

Understanding Remark Codes

Remark codes are typically brief, often two-character alphanumeric sequences, which may be accompanied by a concise text description. These codes are commonly found associated with specific tradelines, which are individual accounts like credit cards or loans. They can also appear in sections related to public records, such as bankruptcies or judgments, or within the inquiry section of a credit report. Data furnishers, including creditors, lenders, and collection agencies, use these codes to convey specific account statuses or events to the credit bureaus.

Common Remark Codes and Their Significance

Credit reports feature various remark codes, each carrying a distinct meaning for a consumer’s credit standing. Codes related to account status include “11” for a current account, indicating payments are being made as agreed. “13” signifies an account that is paid or closed with a zero balance. Other codes, such as “closed by consumer” or “closed by credit grantor,” clarify how an account’s active status concluded.

Derogatory remark codes highlight negative events that can significantly impact creditworthiness. For instance, “DEL” followed by numbers like “30,” “60,” “90,” or “120+” indicates an account is delinquent by that many days past its due date. A “93” code means an account has been assigned to internal or external collections, while “97” denotes an unpaid balance reported as a loss, or a charge-off. Codes such as “settled” or “written-off” also appear when a debt has been partially paid or deemed uncollectible.

Public record codes, like “bankruptcy filed,” identify formal insolvency proceedings. “94” indicates a completed foreclosure, which can severely impact a credit score for several years. While remark codes themselves do not directly influence a credit score, the underlying financial events they represent are factors in score calculations. Negative remarks, such as late payments or collection accounts, can remain on a credit report for up to seven years, while bankruptcies can stay for up to ten years, affecting the ability to secure new credit.

Addressing Remark Codes on Your Credit Report

When a consumer identifies a remark code on their credit report that appears incorrect or inaccurate, they have the right to dispute the information. The process typically begins by obtaining a copy of your credit report from each of the three major credit bureaus: Equifax, Experian, and TransUnion. Once the report is reviewed, any identified inaccuracies, including remark codes that do not reflect the true status of an account, should be noted.

Gathering supporting documentation is an important step, as it provides evidence to substantiate the dispute. This documentation might include bank statements, payment confirmations, or letters from creditors that contradict the reported remark. The dispute can then be initiated directly with the credit bureau online, by mail, or over the phone. The Fair Credit Reporting Act (FCRA) mandates that credit bureaus investigate disputes within 30 to 45 days of receiving them. After the investigation concludes, the credit bureau must notify the consumer of the results, and if the information is found to be inaccurate, it must be updated or removed from the report.