Reason
 Code

Reason Code Description

Actions To IncreaseCredit Scores

01

The amounts you owe on your accounts are too high for youto earn a higher FICO® score.

Instruct the client to pay down their credit cards. If theclient has the cards maxed out and do not have money to pay down balance,contact the credit card companies and try to get a credit limit increase.This will lower the utilization ratio.

02

You have accounts on your credit report which have a recordof payments being missed in the past. This is hurting your FICO score.

Instruct the client to pay their bills on time. The damagedone by the late payments will fade over time with continued on-time paymenthistory. Late payments may also be disputed if reporting incorrectly.

03

You lack your credit card accounts that were issued by abank or major credit card issuer and this is preventing your FICO score frombeing higher.

Instruct the client to get a major credit card such as aVISA, MasterCard, or American Express. New credit clients may need to get aco-signer to open the accounts. Creditors and lenders want to see the clientis creditworthy in the eyes of reputable companies.
 The basic premise is “if they gave you a credit card, youmust be a credit worthy person.”

04

You have too many credit card accounts that were issued bya bank or credit card issuer and have a balance. This is preventing your FICOscore from being higher.

Instruct the client to pay down their credit cards andother revolving accounts.

05

You have too many accounts with a balance and this ispreventing your FICO score from being higher.

Instruct the client to pay down their credit cards and otherrevolving accounts. Credit scoring does not like to see lots of balancescarried.

06

You have too many finance company accounts on your creditreport. This is preventing your FICO score from being higher.

Finance company loans are considered high-risk loans. Thusany loans from finance companies are a red flag. Instruct the client to seeka bank loan or transfer the balance onto a credit card if possible.

07

Your credit file doesn't have enough account experience foryou to earn a higher FICO score

Instruct the client to open up some credit. Credit cards,auto loans, mortgages, etc. will build a healthy credit profile. Lenders wantto see the person can manage credit responsibility.

08

You have too many inquiries in your credit report in thelast 12 months. This is preventing your FICO score from being higher.

Instruct the client to stop applying for credit. Only applyfor credit when it is needed. Also check to determine if the inquiries areauthorized under the FCRA “permissible purpose.” Unauthorized inquires shouldbe considered for dispute.

09

You have too many accounts that have been recently opened.This is preventing your FICO score from being higher.

Instruct the client to stop opening accounts. Opening toomany accounts too fast makes the client appear as a risk.

10

Your credit card balances are too high for your creditlimits. This is preventing your FICO score from being higher.

30% of a credit score is based on utilization ratio. Thisis the ratio between the credit limits on accounts and the outstandingbalances. This ratio shows lenders how much available credit is used overalland will affect a person’s credit score if the ratio is too high.
 The recommended ratio is between 10-35%. Instruct theclient to pay down as much debt as possible or transfer balances to a cardwith a higher credit limit.

11

The amount that you owe on your credit card and store cardaccounts is too high for you to earn a higher FICO score.

Instruct the client to pay down their credit cards andother revolving accounts. Credit scoring does not like to see lots ofbalances carried.

12

The length of time since you established your credit cardaccounts is too short. This is preventing your FICO score from being higher.

15% of a credit score is based on length of credit history.The only cure is time. Instruct the client not to close any old accounts thatare in good standing or they will lose the credit history.

13

The time since one of your accounts has been delinquent istoo short. This is hurting your FICO score.

The credit scoring model considers recency as a factor. Themore time that passes since a derogatory status the better. A collectionaccount 2 months old affects a credit score much worse than a collectionaccount 5 years old. Thus the more time that passes the better.

14

The length of time your accounts have been established istoo short. This is preventing your FICO score from being higher.

15% of a credit score is based on length of credit history.The client needs to have a blend of accounts in good standing for a period oftime.

15

You lack credit card accounts that were issued by a bank ormajor credit card issuer and this is preventing your FICO score from beinghigher.

Instruct the client to avoid credit cards and store cardsnot issued by banks. This can include finance companies or retail storecards.

16

You lack any type of credit card account information, whichis preventing your FICO score from being higher.

10% of a credit score is based on the types of credit inuse. Lenders like to see a blend of credit such as credit cards, auto loans,mortgages, etc. Only having credit cards will affect a credit score.

17

You lack activity on accounts other than a mortgage. Thisis preventing your FICO score from being higher.

Having a mortgage loan in good standing helps a creditscore. However, lenders want to see that the client can manage credit fromother types of lenders including credit cards, auto loans, etc. Instruct theclient to use their credit cards (even if they pay it off each month).

18

You have too many accounts that show a record of beingdelinquent. This is hurting your FICO score.

Accounts that are delinquent and derogatory should beconsidered for dispute. The reporting of the items may be inaccurate, unverifiableor outdated.

19

You have too few accounts on your credit report not showingpaid on time. This is hurting your FICO score.

All late payments should be verified as accurate. Any itemsthat are inaccurate, unverifiable, or outdated should be considered fordispute.

20

The time since you derogatory public record or collectionitem was reported on your credit report is too recent. This is hurting yourFICO score.

The credit scoring model considers recency as a factor. Themore time that passes since a derogatory status the better. However theaccounts must be reporting accurately.Any items that are inaccurate, unverifiable, or outdated should beconsidered for dispute. Often collection agencies report duplicate accountsor illegally re-age accounts. You should consider disputing directly with thecollection agency. Furthermore, public records are gathered by third-partiesand lots of mistakes get made. Verify the accurateness of the public record.Inaccurate public records should be considered for dispute.

21

You have accounts that are currently past due. This ishurting your FICO score.

Instruct the client to pay any past-due balances. If thepast due balances are reporting incorrectly then the account(s) should beconsidered for dispute.

23

You have too many credit card accounts that were issued bya bank or credit card issuer and have a balance. This is preventing your FICOscore from being higher.

Instruct the client to pay down their balances. The lowerthe balances the better.

24

You lack recent activity on credit card accounts. This ispreventing your FICO score from being higher.

Instruct the client to use their credit accounts. Havingthe credit accounts and not using them can hurt their score.

28

You don't have the statistically optimal number of accountson your credit report. This is preventing your FICO score from being higher.

10% of a credit score is based on the types of credit inuse. The ideal blend is a few credit cards, one store card, an auto loan anda mortgage or real estate loan.

29

You lack recent balances on credit card accounts that wereissued by bank or major credit card issuer. This is preventing your FICOscore from being higher.

If the client pays the credit card off in full each month,it will appear as if there is no activity on the credit account. Instruct theclient to carry a small balance for at least a few months (long enough to getreported).

30

The amount of time since your most recent account openingis too short. This is preventing your FICO score from being higher.

Instruct the client to open a new credit account. This willshow that they are managing credit responsibly.

31

You have too few accounts that show recent payments beingmade. This is preventing your FICO score from being higher.

Instruct the client to use any old accounts, carry abalance for a short period (long enough to be reported) than pay them off.Have them do this from time to time.

32

You have a lack of recent installment loan accountinformation. This is preventing your FICO score from being higher.

Credit scoring likes to see installment loans as well asrevolving accounts. Installment loans can be auto or mortgage loans.

33

Your loan balances are too high for your original loanamounts. This is preventing your FICO score from being higher.

Instruct the client never to miss a payment on ainstallment loan. Payments on installment loans should take precedence overrevolving accounts such as a credit card.Late payments can result in penalties and increase the balance of theloan.

34

The amount that you owe on your delinquent accounts is toohigh and this is hurting your FICO score.

Instruct the clients to pay any delinquent accounts ifpossible. However, be careful paying old accounts as it may re-age theaccount and make it appear as recent activity. The more recent the derogatory the worse itis. Verify the accuracy of the reporting delinquent accounts. Inaccurate reportingshould be considered for dispute.

38

Your credit report shows a record of having accounts thathave been seriously delinquent. This is hurting your FICO score.

This includes accounts with a negative status such ascharge-offs, wage earner plan, included in bankruptcy, collection account,repossessions, settlement accepted and more. Verify the accuracy of thereporting delinquent accounts. Inaccurate reporting should be considered fordispute.

39

You have accounts on your credit report that have a recordof being seriously delinquent. This is hurting your FICO score.

This includes accounts with a negative status such ascharge-offs, wage earner plan, included in bankruptcy, collection account,repossessions, settlement accepted and more. Verify the accuracy of thereporting delinquent accounts. Inaccurate reporting should be considered fordispute.

40

You have information in a “Public Records” section of yourcredit card report. This is hurting your FICO score.

Public records may include judgments in civil actions,state or federal tax liens, and/or bankruptcies. Public records can onlyremain on a credit report for 7 years from the date discharged / dismissed.If it is past 7 years, dispute the public record. Also, verify the accuracyof the reporting public records. Inaccurate reporting should be consideredfor dispute.

46

The payments due on your credit accounts each month are toohigh. This is hurting your FICO score.

Large payments typically mean large balances. If the clienthas large payments, this could mean that their balances are high which may bea risk indication. Instruct the client to pay down balances and get theirmoney payments lower.

97

You have a lack of recent auto loan account information andthis is preventing your FICO score from being higher.

10% of a credit score is based on the types of credit inuse. Having an auto loan is considered a healthy blend of credit.Furthermore, making on-time payments on an auto installment loan greatlyboosts a person’s credit score.