Amount owed on delinquent accounts

FICO code number

Code numbers can differ by bureau and score version. The wording of the statement is what to match.

What puts this reason on your score

FICO's payment history category includes the amount still owed on delinquent accounts or collection items. A charged-off card with its full $4,000 balance unpaid counts here.

In FICO's published list, this is a base code for Equifax as 34. The TransUnion and Experian entries are marked for industry scores and FICO 10T. myFICO says third-party collection balances don't count in utilization, but they still feed payment history.

What to check on your credit report

• List the balance owed on each late, charged-off and collection account.
• Check that settled or paid accounts now show $0 owed.
• Look for an original account and its collection both showing the full balance. Once a debt is sold, only one of them should report it as owed.

What you can do about it

• If you pay or settle, keep the letter and check that the report updates to $0.
• Dispute a balance that's higher than what you owe, or a sold account that still shows a balance with the original creditor.
• Get any settlement terms in writing before you pay.

How soon a change can show

A balance change shows on the creditor's or collector's next monthly update. The account itself stays for its full reporting period.

If you are applying for a mortgage

Before you pay or settle a delinquent account during a mortgage process, ask the lender. Classic mortgage scores still count paid collections, and the underwriter may need the paper trail for any payoff.

Guides that go deeper

• What settling a debt for less does to your credit and taxesSettling closes a debt for less than the balance, but it's reported as settled and the forgiven part can be taxable. The math and the 1099-C, explained.
• Should you pay a collection account? How to decidePaying a collection doesn't remove it, and the score effect depends on the model. How to decide, what to verify first, and how to pay safely.
• Charge-off vs. collection: two entries, one debt, different rulesA charge-off is the lender writing off your debt; a collection is someone else trying to collect it. Why both can show up, and how each is scored.
• What your credit score reason codes are telling youReason codes list what held your score back the most, in order. What the common ones mean, which you can act on, and which to leave alone.