When reading your credit report, you may encounter many abbreviations that can make you feel like you’re reading another language or a secret code. These abbreviations are typically shorthand for creditors, industry abbreviations, types of accounts, and statuses. Familiarizing yourself with some of the most common credit report abbreviations can help you determine if you need to take action to correct errors.
What is a Credit Report and How Can I Access It?
Institutions that issued you credit cards and loans send regular updates about your accounts to credit reporting agencies, also known as credit bureaus. Credit reporting agencies collect all the data and compile it into a single file, known as your credit report. When you apply for new credit, the financial institution pulls your credit report to determine if you meet the required qualifications.
To quickly assess your likelihood of paying back the loan on time, creditors may instead use your credit score, which is a three-digit numerical summary of your credit report information at a specific point in time.
It is important to check your credit report regularly to ensure that the information it contains is accurate, complete, and within the allowable reporting time. You can access your credit report online from any of the credit reporting agencies, but there may be a fee. You also have the right to obtain one free credit report annually from the major credit reporting agencies.
Note: You can obtain one free credit report each week from Equifax, TransUnion, and Experian until December 2023 at AnnualCreditReport.com.
1FBUSA: 1st Financial Bank USA
1st Financial Bank USA offers credit cards and loans. This code may appear on your credit report if you have a credit product or loan from this bank.
C or CLS: Closed
This code indicates an account that is no longer open for new activity. Experian uses the status “CLS,” while TransUnion uses “C.”
C or F: Collections
“Collections” refers to an account that has been forwarded to a third-party collection agency for further collection efforts. TransUnion also uses the code “F” when assets are recovered by the creditor.
C1: Credit Account, Paid as Agreed
C1 refers to a credit account that has been paid as agreed. The “C” stands for credit account and the “1” indicates the payment method, paid according to agreement.
CLS: Secured Credit Limit
When this appears in the “Account Type” area of your credit report from Experian, this code stands for “Secured Credit Limit.”
CO: Charge-Off
A charge-off code indicates an account that was overdue for more than 180 days and has been charged off as a loss, closing it for future purchases. This can affect your credit score, so it’s wise to take steps to correct the situation.
D: Default
This status indicates that the contract requirements have not been met, such as being late on payments.
DEL: Delinquent
This indicates delinquency, or an account that is overdue by 30 days or more. DEL may be followed by 30, 60, 90, or 120+ to indicate the number of days overdue. This code may sometimes also appear as DELINQ.
DLA: Date of Last Activity
This is the date of the most recent activity on your account, such as a payment or purchase. It may sometimes appear as “LACT” or “Last Activity.”
ECOA: Equal Credit Opportunity Act
ECOA stands for the Equal Credit Opportunity Act. The law requires businesses to report jointly held accounts between spouses to credit reporting agencies when both spouses’ names are on the contract or when the company receives a written request from one spouse.
It will appear
ECOA as a column header will be followed by codes indicating who is responsible for paying each account.
EFX or EF: Equifax
Abbreviation for Equifax, one of the three major credit reporting agencies.
FCRA: Fair Credit Reporting Act
A law that defines your rights and responsibilities of credit reporting agencies and companies that provide information to credit agencies.
FP: Personal Loan Company
This is a type of business code that refers to a personal loan company.
GECRB JCP: G Capital Retail Bank
G Capital Retail Bank is the former bank that issued the JCPenney credit card. The bank changed its name to Synchrony Bank on June 2, 2014. This code may appear on your credit report if you had a JCPenney store credit card or were an authorized user on it.
I9: Installment Loan, Charged Off
This status indicates that the installment loan has been charged off as a debt. The “I” stands for installment account and the “9” indicates the method of payment (in this case, charged off).
KD: Major Derogatory
This term appears in some credit reports to indicate a serious derogatory, such as charged off debt, debt collection, bankruptcy proceedings, or repossession.
M: Mortgage Loan
A type of loan used to purchase a home or borrow against the equity of a home you already own.
M: Manually Frozen
In TransUnion’s credit report, the “M” next to the verification date indicates that the account has been manually frozen.
M: Primary Borrower with Co-signer
In TransUnion’s credit report, the “M” in the ECOA section refers to the primary borrower on a co-signed account. See also “ECOA.”
M: Medical and Health-related
Yes, “M” can mean a lot of things on a credit report. In TransUnion’s credit report, the “M” next to the provider’s name indicates that the business is in the medical and health-related field.
M1: Mortgage, Paid as Agreed
Refers to a mortgage that was paid in accordance with the terms of your loan agreement. The “M” stands for mortgage account and the “1” indicates the payment method.
MACYSDSNB: Macy’s Store Bank
Macy’s Store Bank is the issuer of the Macy’s store credit card. This code may appear on your credit report if you have a Macy’s store credit card or are an authorized user on it.
MOP: Method of Payment
MOP, or method of payment, describes the current payment status on the account. For example, it may state “paid as agreed” or “paid late by 120 days or more past due date”.
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