In credit reporting, Account Status and Payment Rating are often misunderstood or used interchangeably—but they serve distinct purposes in how consumer tradelines are interpreted by credit reporting agencies, lenders, and scoring models. Ensuring that these two fields are reported correctly is critical for accurate credit evaluations and FCRA compliance.
What Is the “Account Status”?
The Account Status represents the current standing of the account at the time of reporting. It tells the credit bureaus whether the account is:
- Open and current
- Delinquent or in default
- Paid and closed
- Charged-off or in collections
This status reflects the borrower’s most recent position relative to the account’s terms and is a required field in Metro 2® reporting.
Examples of Account Status Codes:
- 11 – Current account
- 71 – Account 30 days past due
- 93 – Charged off
- 13 – Paid or closed account
Key takeaway: The Account Status provides a snapshot of the account’s current state.
What Is the “Payment Rating”?
The Payment Rating gives a historical summary of how well the consumer has paid on the account—particularly for accounts that are now current or closed. It is used in combination with the Account Status to show if the account was previously delinquent.
This field is optional but highly recommended for closed accounts or accounts that have returned to a “current” status after past delinquencies.
Common Payment Ratings:
- 0 – Current
- 1 – 30 days late
- 2 – 60 days late
- 3 – 90 days late or more
- G – Collection
- L – Charge-off
Key takeaway: The Payment Rating summarizes prior delinquency behavior, not current status.
Why Do Both Fields Matter?
Together, these fields help credit scoring models and underwriters distinguish between:
- An account that is currently delinquent
- An account that is current but had delinquencies in the past
- A closed account that was never late
This distinction affects a consumer’s credit score, loan eligibility, and perceived credit risk.
For example:
- An account with Account Status = 11 (Current) but Payment Rating = 3 (90+ Days Late) indicates the account has been brought back into good standing, but with significant prior delinquency.
- If both fields reflect “current” or “never late”, it suggests strong and consistent repayment behavior.
FCRA Compliance Considerations
Under the FCRA, data furnishers must ensure:
- Information is accurate and not misleading
- Reporting reflects the true payment behavior of the consumer
- Historical data is not omitted in a way that would distort risk assessment
Furnishers are encouraged to use both fields appropriately to present a full picture of account performance.
Impact on the Consumer’s Credit Report
- Greater Credit Report Clarity
Credit reports that include both Account Status and Payment Rating allow lenders to evaluate repayment trends, not just current obligations. - Better Risk Modeling
Scoring models can assess payment recovery, differentiating consumers who rebound from hardship versus those with ongoing issues. - Transparency in Lending Decisions
Borrowers benefit when their improved behavior is acknowledged, even if they’ve had past delinquencies.
Conclusion
Understanding and correctly applying the Account Status and Payment Rating fields is essential for accurate credit reporting. The Account Status shows where the account stands today, while the Payment Rating provides insight into past payment behavior. Used together, they support a fair and comprehensive credit profile in compliance with the FCRA.