Adverse Credit Report CodesCredit Report *adverse action codes and adverse action descriptions used in consumer credit reports.All three major credit reporting agencies (CRAs) utilize one of three credit scoring models. Experian uses Fair-Isaac Version 2, Equifax uses Beacon 96, and TransUnion uses Emperica. Over a year ago, Fair-Isaac Corporation (FICO) released the latest scoring model known as NextGen (next generation); however, none of the three CRA’s have made the change. FICO, by far, the leader in credit scoring boasts that as of April 6th, 2004, its credit services are used more than 750 times per second to make a credit decision.Here is a list of Adverse Action Codes and their description:Code Description01 The amount owed on accounts too high 02 Delinquency on accounts too high 03 Too few bank revolving accounts 04 Too many revolving accounts 05 Too many accounts with balances 06 Consumer finance accounts 07 Account payment history too new to rate 08 Too many recent account inquiries last 12 months09 Too many accounts opened the last 12 months 10 The proportion of balances to credit limit too high 11 The amount owed on revolving accounts too high 12 Length of credit history too short13 Time since delinquent too recent 14 Lack of recent bank revolving activity is short 16 Lack of recent revolving activity too short 17 No recent non-mortgage balance information18 Number of accounts with delinquency 19 Too few accounts paid as agreed 20 Time since derogatory public record collection21 Amount of past due on account22 Serious delinquency, derogatory public records or collection 24 No revolving balances 28 Number of established accounts 30 Time since the last account opening too short 31 Too few accounts with recent payment 32 Lack of recent installment loan information 33 The proportion of loan balances to loan amounts too high 34 The amount owed on delinquent accounts 35 Payment due on accounts 36 Length of time since open accounts were established 37 The number of consumer finance company accounts established/relative to the length of credit history. 38 Serious delinquency and public records or collections filed 39 Serious delinquency 40 Delinquency public record or collections filed 47 Number of consumer finance inquiries 97 Lack of recent auto loan information 98 Length of time since consumer company loans was established 99 Lack of recent account information regarding consumer finance company.The adverse action codes used by the CRA’s are somewhat of a mystery to consumers. All three CRAs list the four known “Adverse Actions” on each credit report, which give the consumer an explanation and also illustrate the top four adverse conditions on their reports. Sometimes the codes are four or five digits, always with the last two numbers being adverse code. There are close to 40 adverse action codes, with many gaps in-between the numbers – which are filled as the need arises. The CRA’s take deductions from the credit score for each adverse action that applies, many of which are similar.*The Better Credit Scores information outlined above is courtesy of TrueCredit.