What Is a Remark on a Credit Report?

A credit report details an individual’s financial history, including payment behavior, debt, and credit accounts. Within this document, “remarks” are explanatory notes or codes that provide additional context to specific account statuses or personal information. These remarks offer supplementary details that clarify entries on the report, helping to understand the circumstances surrounding various credit events.

Understanding Remarks on Your Credit Report

Remarks are short phrases or codes added by creditors or credit bureaus to provide more specific information about an account’s status or a consumer’s credit history. Consumers can find these remarks adjacent to specific account entries, such as a credit card or loan, or within a dedicated section for public records on their credit report.

Common Types of Remarks

Remarks fall into several categories, each conveying specific information about an account or public record. Account status remarks indicate the condition of a credit obligation. For example, “Account closed by creditor” signifies the lender initiated the closure, while “Settled for less than full amount” indicates the debt was resolved for a reduced sum. Other common account remarks include “Charge-off,” which denotes a debt deemed uncollectible by the creditor, or notations of late payments.

Public record remarks detail events found in public databases that impact credit, such as “Bankruptcy discharged” or “Tax lien released.” Consumer statement remarks allow individuals to add their own brief explanations to clarify specific situations, such as “Identity theft victim” or “Disputed account.” Administrative remarks, like “Account transferred” or “Duplicate entry,” are internal notes that may appear due to data management or account servicing changes.

How Remarks Influence Credit Decisions

Lenders and creditors analyze remarks on a credit report to gain a deeper understanding of a consumer’s creditworthiness beyond just numerical scores. While remarks do not directly impact a credit score, they provide important context that can significantly influence a lender’s risk assessment. For instance, a remark indicating an account was “settled for less” offers a different perspective than an account “paid in full,” even if both are closed, as it suggests a past financial difficulty.

Lenders review the entire credit report to understand the nuances of past financial behavior. Remarks help them interpret the reasons behind certain account statuses, offering insights into potential risks or mitigating circumstances. This enables creditors to make more informed decisions about extending credit, setting interest rates, or determining loan terms.

Addressing Inaccurate or Outdated Remarks

Identifying inaccurate or outdated remarks on your credit report requires proactive steps. Begin by obtaining copies of your credit reports from each of the three major credit bureaus, carefully reviewing every entry to pinpoint the specific remark(s) in question.

Once an inaccuracy is identified, you can initiate a dispute with the credit bureau that reported the information. The Fair Credit Reporting Act (FCRA) grants consumers the right to dispute inaccurate or incomplete information. Submit disputes in writing, providing the account number, the specific remark you are disputing, and a clear explanation of why it is inaccurate. Include copies of any supporting documentation that validates your claim, such as payment records or official correspondence, while retaining original documents for your records.

Upon receiving your dispute, the credit bureau generally has 30 days to investigate the claim, though this period can extend to 45 days if the dispute arises from a free annual credit report or if you submit additional information during the investigation. The bureau will contact the entity that furnished the information, which then has an obligation to investigate and respond. If the investigation confirms the information is inaccurate or cannot be verified, the remark must be removed or corrected on your credit report. If the dispute with the credit bureau is unsuccessful, contact the original creditor directly to address the inaccuracy.