Decoding the Account Status Codes on Your Credit Report
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Why Account Status Codes Matter
When you pull your credit report, you'll find more than balances and payment dates. Each account carries a status code — a standardized label that tells lenders exactly where that account stands right now. These codes directly influence how your credit score is calculated, because scoring models weigh account statuses heavily when assessing risk.
Understanding what each code means puts you in a much stronger position to catch errors, dispute inaccuracies, and interpret why your score sits where it does. Think of status codes as the shorthand summary lenders use — and now you can read that summary too.
| Reporting Standard | Metro 2® Format (Consumer Data Industry Association (CDIA)) |
| Major Credit Bureaus | Equifax, Experian, TransUnion |
| Derogatory Item Retention | Up to 7 years (most items) (Fair Credit Reporting Act (FCRA)) |
| Bankruptcy Retention | Up to 10 years (Chapter 7) (Fair Credit Reporting Act (FCRA)) |
| Free Annual Reports | 1 per bureau per year (AnnualCreditReport.com (federally mandated)) |
The Most Common Account Status Codes Explained
The codes below appear most frequently across the three major credit bureaus — Equifax, Experian, and TransUnion. While exact labeling can vary slightly by bureau, the underlying meanings are standardized through Metro 2®, the data format most lenders use to report account information.
Current
The account is in good standing and all payments are up to date. This is the most favorable status a revolving or installment account can carry.
Late (30 / 60 / 90 Days)
The account has a missed payment that is 30, 60, or 90 days past the due date. Each threshold is reported separately and increases in severity.
Charge-Off
The lender has written the debt off as a loss after extended non-payment (typically 120–180 days). The balance may still be legally owed and is often sold to a collection agency.
Collection
The debt has been placed with or sold to a collection agency. A collection account can appear as a separate tradeline even if the original charged-off account is also listed.
Transferred
The account has been moved to a different lender or loan servicer. The original tradeline closes, and a new one opens under the acquiring entity.
Closed
The account is no longer active. Closed accounts remain on your report for up to seven to ten years and continue to affect credit age and payment history calculations.
Paid / Satisfied
The account balance has been fully paid. For previously derogatory accounts, 'paid charge-off' or 'paid collection' still indicates a prior negative history.
Deferred
Payments have been temporarily postponed — common with student loans during an in-school or grace period. Interest may still accrue during deferment.
For a broader look at how these fields fit inside your full report, see what a credit report actually contains.
How Negative Statuses Affect Your Credit Score
Not all statuses carry equal weight. Current is neutral to positive; everything else on the negative end creates varying degrees of scoring damage.
7 years
How long most derogatory marks stay on your report
The Fair Credit Reporting Act sets this as the standard retention period for most negative items, including late payments and charge-offs.
~100 pts
Potential score drop from a single 30-day late payment
FICO research suggests a single missed payment can reduce a good-standing score significantly, with the impact varying by starting score and credit history depth.
35%
Share of FICO score driven by payment history
According to myFICO, payment history is the single largest factor in the standard FICO scoring model — making account status codes especially consequential.
Statuses like late (30/60/90 days), charge-off, and collection are considered derogatory marks. Under the Fair Credit Reporting Act (FCRA), most derogatory items can remain on your report for up to seven years from the date of first delinquency. Bankruptcies may stay for up to ten years depending on the chapter filed.
The further past-due an account becomes, the steeper the score impact — a 90-day late mark is generally more damaging than a 30-day late mark. If you spot a derogatory status you believe is incorrect, you have the right to dispute it directly with the bureau that reported it.
Once you understand how statuses translate into credit score ranges and lender signals, you can set realistic timelines for rebuilding.
Statuses That Signal Account Changes
Some codes don't reflect payment behavior — they describe structural changes to an account. These can be confusing because they may appear even when you've done nothing wrong.
- Transferred: Your account was moved to a different lender or servicer (common with student loans and mortgage servicing). The original account closes and a new tradeline opens.
- Sold: The debt was sold to another creditor, typically a debt buyer. You may see both the original account and a new collection account appear.
- Closed by Grantor / Closed by Consumer: Indicates who initiated the closure. Closed accounts remain on your report and continue influencing your score — especially your average account age.
- Refinanced / Renewed: The original loan was replaced by a new one. The old account will typically show as closed.
If you have loans across multiple categories, our guide to common loan types explains how servicing transfers and refinancing typically work for each.
Dispute Errors Promptly and in Writing
This article is for general informational purposes only and does not constitute personalized financial, legal, or credit advice. For guidance specific to your situation, consult a licensed financial advisor or a HUD-approved credit counselor.
The content on this site is for informational purposes only and is not a substitute for professional advice. Always consult a qualified professional for guidance specific to your situation.