Your credit report is an overview of everything you have borrowed and repaid using credit. Credit reports are used by a variety of groups, from lenders to landlords, in order to gauge your trustworthiness for making payments. One important section of a credit report to understand is the “status of accounts” section.

The status of accounts section of a credit report includes information on each account that’s reported to the credit agency, whether it’s in good or adverse standing. It states whether the account is currently open, and provides a comment on the account’s payment history.1

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Why is the Status of Accounts Section Important?

The status of accounts section details whether account payments are or have been made in full and on time. Lenders may view this section to assess credit risk and determine interest rates on new credit applications.

Your closed accounts will also be listed, with a comment regarding how each account was handled by you while it was open. This will include your payment history on each account and the duration each account was open.1

Common Credit Card Account Statuses

Some common account statuses on credit reports include:

  • Pays As Agreed: Account is paid in full monthly as per the terms of the credit agreement.2
  • Paid/Closed Never Late: This account was paid in full with no late payments, but is now closed.3
  • Account Paid In Full for Less Than Full Balance or Settled: This means that the account was not paid in full, or was settled for an amount less than owed. It may have a negative impact on your credit score.4
  • 60 Days/120 Days Past Due: This denotes that an account is open but the minimum payment has not been received and is late. This account status may have a negative impact on your credit score.
  • You can find a list of more common credit statuses here.

Where Can I See My Credit Card Account Statuses?

You are entitled by law to a free credit report from each of the three major credit bureaus. Head to www.annualcreditreport.com to see your status of accounts and more in your full credit report.

Understanding your credit report and its contents is an important personal finance practice. By monitoring your credit profile, you can both ensure its accuracy and identify areas of weakness, like adverse credit statuses. In turn, you can take the necessary steps to help improve your credit score and present a better looking picture to those groups who view your credit report, whether it’s because you’re seeking an important loan, a new job, or otherwise.

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