Factually Incorrect Reason Codes

[crickettoo]

Hi,

I've been monitoring my FICO scores and have noticed reason codes that are factually incorrect.  Has anyone else noticed this? The most recent was from Experian.  It says:

The time since your last delinquency decreased
The time since your last delinquency—which includes late payments, derogatory marks and collection accounts—is now 6 years 4 months, meaning you have at least one new delinquency on your report.

I have no idea what that even means but it is not true.  I do not have any new delinquencies on my report. 

There have also been others, but I can't remember all the details.  But, they were obviously wrong.  

How do the reason codes get listed?  Is there any reason to try and dispute them if they are incorrect? 

Thanks so much.

--Cricket

[FireMedic1]

Reason codes are just comments to help the consumer.

https://www.myfico.com/credit-education/blog/reason-codes 

https://irp-cdn.multiscreensite.com/376e8bb8/files/uploaded/FICO%20Reason%20Codes.pdf 

[crickettoo]

So, are you saying that incorrect reason codes are not indictative of inaccuracies in the credit report?  Thanks so much for your expertise.

[FireMedic1]

There are 100 reason codes. All 3 CRA's have their own which comes from FICO, Beacon, ect. It would take a college essay to try and explain what the reason is assigned to each code number. If you were denied. You have to recieve up to 4 reason codes. We can talk about whats fair and what should be right. But as as consumers were the little people. And have to accept it. I get resons for score changes dont make a lick of sense. But its just a comment. Its the score that matters. Creditors dont see the reason codes. They have their own codes internally if your approved or denied and combination with FICO.

[crickettoo]

Thanks so much.  I won't worry about it. 

[Thomas_Thumb]

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@crickettoo wrote:

Hi,

I've been monitoring my FICO scores and have noticed reason codes that are factually incorrect.  Has anyone else noticed this? The most recent was from Experian.  It says:

The time since your last delinquency decreased
The time since your last delinquency—which includes late payments, derogatory marks and collection accounts—is now 6 years 4 months, meaning you have at least one new delinquency on your report.

I have no idea what that even means but it is not true.  I do not have any new delinquencies on my report. 

There have also been others, but I can't remember all the details.  But, they were obviously wrong.  

How do the reason codes get listed?  Is there any reason to try and dispute them if they are incorrect? 

Thanks so much.

--Cricket

---

What you need to do is wait. It looks as though something triggered a delinquency near 7 years age to resurface. CRAs are required to delete any delinquency at 7 years but they may delete early at their descretion.

In some cases a string of lates is deleted when the earliest on in a string reaches 7 years. However, that is not required. As an example, if you have a string of 8 lates, the oldest might hit 7 years but the most recent would only be 6 years 4 months.

Ultimately, it is the score that matters. If your score took a hit then investigate. If not, then there is no point in expending effort. Only the top reason codes get listed. Rank order of codes is subject to change.

[crickettoo]

Ok, thanks for the advice.  Looking back at it, I now remember that an old late payment fell off my CR early.  It did not affect my score.  I'm not going to waste any time worrying about it.  Thanks so much!

-Cricket

[AndySoCal]

@crickettoo  @FireMedic1   FICO Score reason codes are up to 4 factors that affected your FICO score. The score reasons are in order of impact good or bad.   Both of the reasons are dealing with past late payment(s). If it was concerning a new late payment you would have seen a score drop along with it.  The link is to a list of the FICO score reason codes. The PDF file does not have the most recent score versions and it is on the old side. I included the link for informational purposes. You can do with it what you like. Some FICO score models while use different ones

https://irp-cdn.multiscreensite.com/376e8bb8/files/uploaded/FICO%20Reason%20Codes.pdf 

[FireMedic1]

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@AndySoCal wrote:

@crickettoo  @FireMedic1   FICO Score reason codes are up to 4 factors that affected your FICO score. The score reasons are in order of impact good or bad.   Both of the reasons are dealing with past late payment(s). If it was concerning a new late payment you would have seen a score drop along with it.  The link is to a list of the FICO score reason codes. The PDF file does not have the most recent score versions and it is on the old side. I included the link for informational purposes. You can do with it what you like. Some FICO score models while use different ones

https://irp-cdn.multiscreensite.com/376e8bb8/files/uploaded/FICO%20Reason%20Codes.pdf 

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@AndySoCalI had the same link in Post #2

[crickettoo]

Thanks for the info.  I previously didn't understand the reason code.  Now I understand it in a literal way but it still doesn't make sense.  It was reason number 4, and it didn't affect the score, so I'm not going to worry about it.  Thanks for the response and the list of codes.