Understanding Credit Reason Codes - Northern Michigan's News Leader

Understanding Credit Reason Codes

Posted: Updated:

Credit scoring company VantageScore says many still don't understand why they are denied credit.

Credit lenders say only about 10% of their customers fully understand the 2-digit reason code system used in the explanations.

The 2011 Dodd-Frank Act requires lenders to inform consumers who are declined credit or given less favorable terms, and explain the decision.  

Analysts say the codes often use confusing terminology and are too short.  

To help you understand the reasons people are denied credit, follow the link posted on the left.