Balances on delinquent or derogatory accounts are too high

VantageScore code numbers

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

VantageScore's explanation says the total balance is high on your accounts with late payments. A charged-off card still showing $3,200 owed, an auto loan two payments behind and an unpaid collection all add to the same total.

Most payment history codes need time. This one has a dollar figure behind it, and that figure can come down. Paying or settling the troubled accounts lowers the total even while the late history stays on the report.

What to check on your credit report

• The balance and past-due amount on each late, charged-off or collection account
• A charged-off account and the collection that bought it both showing a balance. Only one should.
• A settled or paid account still showing the old balance instead of $0

What you can do about it

• Bring past-due accounts current first, since they keep adding late months while they're behind.
• For charge-offs and collections, confirm the debt and the amount before paying. A debt validation request makes the collector show its records.
• After you pay or settle, check the next report for a $0 balance and ask the creditor or collector to correct it if it doesn't update.

How soon a change can show

The balance changes when the lender or collector reports the new amount, usually within one or two monthly reporting cycles after the payment posts. The late history itself stays.

If you are applying for a mortgage

Mortgage programs look at unpaid charge-offs and collections directly, apart from the score. Ask your loan officer which ones need to be paid or explained before you start paying them off.

Guides that go deeper

• 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.
• 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.
• Debt validation: your right to make a collector prove the debtFederal law gives you 30 days after a collector's validation notice to dispute in writing and force it to pause. How the clock works and what to send.
• 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.
• 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.