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What Does Mop Mean On A Credit Report

Negative Codes On An Equifax Credit File

What does write off mean on a credit report?

For instance, here are a host of credit problems you may have faced, along with the Equifax letter code that summarizes or abbreviates the problem.

  • Collection Account: CA

  • Repossession: R

  • Voluntary Surrender: VS

When it comes to missed payments, Equifax uses number codes to indicate the severity of your delinquency. So the length of your time that your payment was past due will typically serve as the number code used.

Thus, if youre 30-59 days past due on an account, it will say: 30.

Past-due accounts are noted on Equifax like this:

  • 30-59 Days Past Due: 30

  • 60-89 Days Past Due: 60

  • 90-119 Days Past Due: 90

  • 120-149 Days Past Due: 120

  • 150-179 Days Past Due: 150

  • 180+ Days Past Due: 180

Obviously, the longer you go without making required payments, the more damaging that is to your credit score.

The good news is that even if you have less-than-perfect credit, you can still get credit or a loan, as long as your credit files arent completely riddled with late payments and other negative marks.

What Does Charged Off As Bad Debt Mean

If you fail to make minimum payments on your credit card for 180 days, your credit company will consider your debt a loss asset, or an asset that is uncollectible and considered a bad debt.

This means that the credit company no longer believes that you will pay the debt back, and will consider the debt a loss on their profit-and-loss statement. Your creditor will then close your account and may sell your debt to a collections agency.

Lender Caused Credit Errors

It has now happened 3 different times in the past 6 months that another lender runs the credit report and is unable to get an Approve/Eligible from DU, yet when we run the Credit and DU, we are able to get the loan approved. The interesting part is that all other criteria for buying 2 years after a short sale are met.

Lenders use credit reporting services to pull credit, which is then submitted automatically to Fannie Mae DU for processing. I can only surmise that all of these credit reporting services do not submit the information to Fannie Mae in the same format, resulting in the loan being declined by some lenders, and being approved by others.

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Understanding The Mop Rating System

Understanding what the MOP rating system is and the ways in which it can severely affect a credit score can play a critical role in the value you offer your clients as a lender.

Even if you aren’t a lender and you are reading this, knowing what you are looking at on your own personal credit report can be extremely valuable. Perhaps everything looks black and white on the surface, but when you begin to peel back the layers of the credit report, you can potentially spot several inaccurate ratings scattered throughout. Learn this financial literacy today and avoid the need for a credit repair agency later on.

Codes That Describe Inquiries On Your Equifax Credit Report

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There are a few other codes you may see in your Equifax credit report. These pertain specifically to soft inquiries made about you by a host of creditors, lenders, insurers, employers and others.

Your existing creditors sometimes initiate inquiries, or reviews of your credit, purely as a way to keep tabs on your credit health. These are known as soft credit inquiries. They do not impact your credit score and other people cant see them only you can.

Your current creditors may be doing soft pulls of your credit report in order to decide whether to increase or decrease your credit line. Alternatively, they may be reviewing your credit files to make you a promotional offer of some kind.

This is also the case with other third-party banks, lenders and additional entities with whom you are not presently doing business. They get your name, address and limited credit information about you but not your full, detailed credit report solely for the purpose of making you a credit offer.

According to Equifax, these are some of the notations you might find related to various soft inquiries made of your credit file.

PRM Inquiries with this prefix indicate that only your name and address were given to a credit grantor so they can provide you a firm offer of credit or insurance. PRM inquiries remain on your credit report for 12 months.

EMPL Inquiries with this prefix indicate an employment inquiry. EMPL inquiries remain on your credit report for 24 months.

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What Does Mop Stand For

What does MOP mean? This page is about the various possible meanings of the acronym, abbreviation, shorthand or slang term: MOP.

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Can You Get Charge Offs Removed From Your Credit Report

The first step in removing a charged-off account from your credit report is to verify your debt with a validation letter. Youll want to make sure that:

  • You know what company currently owns your debt
  • Only the current company has an open account in your name
  • The outstanding balance is correct
  • The dates are correct

If there is an error, contact your credit agency to discuss making changes. You should also file a dispute with the credit bureaus to ensure that all updates are completed.

If there is no error, your charged-off notation will remain on your credit report for 7 years.

However, if your debt has not been sold to a third party, you can attempt to negotiate full repayment with your original creditor in exchange for the notation to be removed. This is not a guaranteed solution, but it is an opportunity to avoid falling deeper into debt and ruining your credit.

Once the debt has been sold, the notation cannot be removed.

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Transunion Credit Report Format

The Merit Credit Engine is often used for custom credit report layouts, XML, and custom scoring — but if you want human-readable credit reports in thestandard TransUnion print image format, MCE can generate them from the TU4 or TU 4.1 FFR data. Alternatively, the Merit documentation shows how you can request that TransUnion generate thetext reports as part of the TransUnion NetAccess TUNA II response. With either approach, it isan easy matter for software developers to pass the report text directly to theend-user for viewing or printing, as illustrated below.

Ecoa: Equal Credit Opportunity Act

What does Charge Off mean on my Credit Report? Does Charged Off mean I don’t have to pay?

ECOA stands for Equal Credit Opportunity Act. The law requires that businesses report accounts shared by spouses to the credit bureaus when spouses’ names are on the contract or when the business has received a written request from one of the spouses.

ECOA will appear as a column header and will be followed by codes indicating who is responsible for repaying each account.


For shared accounts, the abbreviation or numeral in the WHOSE column shows who an account belongs to.

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Inaccurate Reporting Of Status Code

Along with the comments you will find on a credit report that describe the status of the debt, the credit bureau will assign a status code, or MOP code represented by a number that describes the nature of the reported item.

identified as a foreclosure if there is a current status or manner of payment/MOP code of 8 or 9

A common error in credit reporting is the inaccurate designation of the pre-foreclosure as either a collection, charge off or foreclosure. The error that creditors make that will result in a Refer/Ineligible DU decision is usually the result of the following excerpt from the Fannie Mae Underwriting Guide:

Mortgage accounts, including first liens, second liens, home improvement loans, HELOCs, and mobile home loans, will be identified as a foreclosure if there is a current status or manner of payment/MOP code of 8 or 9 or if there is a foreclosure-related Remarks Code present in the credit report data and associated to the trade line.

Financial Information On Your Credit Report

Your credit report may contain the following financial information:

  • non-sufficient funds payments, or bad cheques
  • chequing and savings accounts closed for cause due to money owing or fraud committed
  • bankruptcy or a court decision against you that relates to credit
  • debts sent to collection agencies
  • inquiries from lenders and others who have requested your credit report in the past three years
  • registered items, such as a lien on a car that allows the lender to seize it if you dont make payments
  • remarks, including consumer statements, fraud alerts and identity verification alerts

Your credit report contains factual information about your credit cards and loans, such as:

  • when you opened your account
  • how much you owe
  • if you made your payments on time
  • if you missed payments
  • if your debt has been transferred to a collection agency
  • if you went over your credit limit
  • personal information thats available in public records, such as a bankruptcy

Also Check: Can You Remove Hard Inquiries Off Your Credit Report

How A Credit Restoration Agency Can Help

My Credit Guy has a team full of experienced, trained eyes on how to properly read through a credit report.

One reason loan officers and lenders of all types from across the United States collaborate with My Credit Guy on any or all credit turndowns that come across their desk is because My Credit Guy is designed to deliver maximum results with the fastest turn-times in the industry. As a credit restoration agency, we have the experience to know how to read these complicated files.

Transparency, quality, and no cutting corners this is our motto. My Credit Guy is truly in the business of helping clients make their dreams come true and helping loan officers close more loans than they ever have before.

My Credit Guy offers free, non-obligatory reviews on all files. Secure upload one of your clients’ credit files today for a free review and experience the My Credit Guy difference. If you’d just like to discuss our process a bit more in-depth first, contact us today and we’d love to meet you!

Want to see what other loan officers are saying about sending their credit turn-downs to My Credit Guy? Check out our testimonials and see how My Credit Guy can help you today.

What To Look For On Your Credit Report

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Lenders use codes to send information to the credit bureaus about how and when you make payments.

These codes have two parts:

  • a letter shows the type of credit you’re using
  • a number shows when you make payments

You may see different codes on your credit report depending on how you make your payments for each account.

Table 1: What letters mean in a rating on a credit report


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Fixing Errors In A Credit Report

Anyone who denies you credit, housing, insurance, or a job because of a credit report must give you the name, address, and telephone number of the credit reporting agency that provided the report. Under the Fair Credit Reporting Act , you have the right to request a free report within 60 days if a company denies you credit based on the report.

You can get your credit report fixed if it contains inaccurate or incomplete information:

  • Contact both the credit reporting agency and the company that provided the information to the CRA.
  • Tell the CRA, in writing, what information you believe is inaccurate. Keep a copy of all correspondence.

Some companies may promise to repair or fix your credit for an upfront fee–but there is no way to remove negative information in your credit report if it is accurate.

Manual Underwriting Fannie Mae Loans

The resolution of many of these inaccuracy issues can be resolved by you contacting your old lender and requesting them to accurately report the status of the short sale to each credit bureau in an attempt to correct the issues.

The challenge with taking this route is that its not always easy to get what you need from a lender that you havent had communications with in over 2 years. If you are successful in getting the lender to cooperate, getting the credit bureaus to make the corrections can also present problems.

One way to circumvent the challenges with inaccurate credit reporting issues is to manually underwrite the loan. Manual underwriting is a way to get around the way that data is submitted to DU.

If you have questions about purchasing after a short sale, have been turned down when you think you shouldnt have been, or are in need of a manual underwrite on your Fannie Mae loan, leave a comment below, call or shoot me an email and well comb through your loan application and eliminate any of these errors that may be preventing you from buying.

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Negative Codes On An Experian Credit File

For example, here are a variety of negative credit scenarios, and the Experian codes used to describe them:

  • 30 Days Past Due: 30

  • 60 Days Past Due: 60

  • 90 Days Past Due: 90

  • 120 Days Past Due: 120

  • 150 Days Past Due: 150

  • 180 Days Past Due: 180

  • Collection: C

  • Claim filed with government: G

  • Insurance claim: IC

  • Voluntarily surrendered: VS

Again, none of these is a flat-out credit deathblow in and of themselves.

But if your credit reports show a repeated pattern of late payments and an inability or unwillingness to pay your obligations, then banks, credit unions and other financial institutions definitely wont be beating down your door to offer you credit.

What Is Bad Debt

TransUnion: What does your credit score mean?

Bad debt is the term used by creditors for debt amounts they consider to be uncollectible. They may also refer to these uncollectible amounts as accounts uncollectible, or uncollectible debts.

A debt becomes uncollectible when:

  • The borrower cannot be contacted over a period of time
  • The borrower refuses to pay
  • The borrower declares bankruptcy
  • The borrower does not have money to pay the debts

There are several types of debt that can be considered bad debts. These include:

  • Personal loans
  • Any other unsecured loans

Companies understand that every loan or credit line runs the risk of becoming uncollectible. However, if they do not have the in-house resources to pursue an unpaid account, it is in their best interest to label the account as uncollectible.

Lending companies have two options to record bad debt. One option is to use the direct write-off method, which identifies the debt as uncollectible and can be used for income tax purposes. The second option is the allowance method, a method that allows the company to place the bad debt amount into an estimated allowance for uncollectible accounts within their accounts receivable.

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Manner Of Payment Ratings

This is the status of the account regarding how the payment is being made. This is the most common area we find mistakes, so first lets break down these ratings! Youve got 0 for too new to rate, 1 is current, 2 is 30 days delinquent, 3 is 60 days delinquent, 4- ninety days delinquent, five- 120 days delinquent, 6- 150 days delinquent or greater, 7 is that wage earner or bankruptcy plan, 8 is the repossession or foreclosure, 9 is collection or charge-off. So now theyve got that status, lets look at the types of accounts you can have in combined with the status.

R for revolving, I for installment, O for open, M for mortgage, C for line of credit, Y for collection and blank for unknown.

So if youve got more questions about the MOP rating or how we can help give us a call our credit advisors would love to talk to you. Were here to help.

Negative Information In A Credit Report

Negative information in a can include public records–tax liens, judgments, bankruptcies–that provide insight into your financial status and obligations. A credit reporting company generally can report most negative information for seven years.

Information about a lawsuit or a judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer. Bankruptcies can be kept on your report for up to 10 years, and unpaid tax liens for 15 years.

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On Your Experian Credit Report

Now lets take a look at the codes and abbreviations found on another credit report: the credit file about you that is maintained by Experian.

In your Experian credit reports, the most positive code you can see is the notation: OK.

The OK reference is just like it sounds. When you see OK next to an account shown in your Experian credit file, it means that there are no problems with your payment history, that you are current and have met the terms of your agreement.

There are two neutral codes in an Experian report. The first is: CLS, which means closed. The second is: ND, which means there is no data reported for the time period.

Other than the codes just mentioned, all the rest of the number codes and letters youll find on an Experian report are reflective of credit payment problems.


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