Breaking Down The Mystique Of Credit Score Variables

If you have ever been denied credit, chances are you have received a letter in the mail, stating the reasons for your credit denial. The letter may have included some codes on it, such as EQ1 or TU19 or even a EX4. Your lender will pull one or more credit reports to decide on how credit worthy you are. If for any reason they decide that you are too risky to extend credit to, you will receive a letter of denial, explaining why you have been denied credit. The letter will explain which credit reports were accessed, and what factors were used to deny you credit. This may include the risk factor reason codes for the risks you pose.

I did some research on these codes, and gained a lot of knowledge on what makes a person a credit risk. We will go over the codes, so you too can gain this knowledge, and avoid these habits. By knowing exactly what creditors are looking at on your credit report, and what mistakes to avoid, you will improve not only your credit score and credit report, you will also have less risk of being denied credit in the future. For ease of explaining these codes EQ stands for Equifax, TU stands for TransUnion, and EX stands for Experian. Not all credit reporting agencies all use the same codes, for example only TransUnion uses code 19.

Amount owed on accounts is too high: EQ1 TU1 EX1

Level of delinquency on accounts: EQ2 TU2 EX2

Too few bank revolving accounts: EQ3 TU N/A EX3

Too many bank or national revolving accounts: EQ4 TU N/A EX4

Too many accounts with balances: EQ5 TU5 EX5

Too many consumer finance company accounts: EQ6 TU6 EX6

Account payment history is too new to rate: EQ7 TU7 EX7

Too many recent inquiries last 12 months: EQ8 TU8 EX8

Too many accounts recently opened: EQ9 TU9 EX9

Proportion of balances to credit limits is too high on bank revolving or other revolving accounts: EQ10 TU10 EX10

Amount owed on revolving accounts is too high: EQ11 TU11 EX11

Length of time revolving accounts have been established: EQ12 TU12 EX12

Time since delinquency is too recent or unknown: EQ13 TU13 EX13

Length of time accounts have been established: EQ14 TU14 EX14

Lack of recent bank revolving information: EQ15 TU15 EX15

Lack of recent revolving account information: EQ16 TU16 EX16

No recent non-mortgage balance information: EQ17 TU17 EX17

Number of accounts with delinquency: EQ18 TU18 EX18

Date of last inquiry too recent: EQ N/A TU19 EX N/A

Too few accounts currently paid as agreed: EQ19 TU27 EX19

Length of time since derogatory public record or collection is too short: EQ20 TU20 EX20

Amount past due on accounts: EQ21 TU21 EX21

Serious delinquency, derogatory public record or collection filed: EQ22 TU22 EX22

Number of bank or national revolving accounts with balances: EQ23 TU N/A EX23

No recent revolving balances: EQ24 TU24 EX24

Number of revolving accounts: EQ26 TU N/A EX26

Number of established accounts: EQ28 TU28 EX28

No recent bankcard balances: EQ N/A TU29 EX29

Time since most recent account opening too short: EQ30 TU30 EX30

Too few accounts with recent payment information: EQ31 TU N/A EX31

Lack of recent installment loan information: EQ32 TU4 EX32

Proportion of loan balances to loan amounts is too high: EQ33 TU3 EX33

Amount owed on delinquent accounts: EQ34 TU31 EX34

Serious delinquency and public record or collection filed: EQ38 TU38 EX38

Serious delinquency: EQ39 TU39 EX39

Derogatory public record or collection filed: EQ40 TU40 EX40

Every single one of these is a reason you can be denied credit. Learn these codes, and review your credit report, and look for any of these factors on your credit report. If you have any of these negatives, do what you can to repair the damage, if possible. These negative behaviors are behaviors to avoid if you care about your credit score.

About Kyle

Kyle has been covering the online lending and consumer finance markets since 2006, he works every day to find topics that help consumers save money daily and avoid debt. You can connect with him on Twitter, LinkedIN and Google+

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