What is the Meaning of Credit Score Comments?

Your credit score is meant to be a numerical representation of your overall credit worthiness and credit history. For this reason, there are no official comments that go with your credit score. However, there are some comments on your credit report that can significantly influence your credit score.

Credit Report Comments

While credit score reports can come in different types of formats, your actual credit report has a set format it must follow. The report lists all of your accounts and the terms of each account, as well as your past payment history for each of your open lines of credit. Credit report comments fill in the blanks to describe those areas of your credit profile that don't fit elsewhere. This includes information about your account, such as its current status and how the account was closed.

Account Status

Your creditors can use the comments field on your credit report to describe any sort of situation your count may be in. For example, if you have a student loan on forbearance, the creditor can indicate as much in the comments section. This is also true for a debt management program or a bankruptcy. Creditors use the comments to indicate if an account has been included in a bankruptcy or has been discharged from bankruptcy, in which case the balance should reflect this. The comments will state if you've disputed any of the information provided by that credit bureau.

Account Closure

If your account is relatively normal with no adverse history, it's customary to see a note in the comments simply saying your account is "open" or is in "good standing." If your account is closed, however, the comments can make a huge difference to your credit score. A comment stating that your account was closed and not paid in full, which is noted if you settle your debt, is an indication that you're not able to meet the obligations of your credit agreement. This one indication can destroy your credit as severely as a bankruptcy. It's important to make sure this information is correct; if it's not, you should dispute it with the credit bureaus.

Credit Score Comments

If you've ever retrieved your credit score as part of a credit monitoring service, you've also received information about what your credit score means. This information isn't official and doesn't get reported to creditors, but it can help you understand how your credit score has been affected by your actions and how it can improve in the future. Practically speaking, these notes are more important than the information on your credit report, as it's impossible to interpret your credit report's true meaning without gauging how your credit compares to the credit of others.