Grid Code G Collections: What Does It Mean?

This code lets potential lenders know that one or more of your accounts are in default

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Maybe you have read your credit report and found a section that states you have a “Grid Code G” collection. You might wonder what it is or what it means for you. “Grid Code G” is a code that lets potential lenders know that one or more of your accounts are in default.

What Does a “Grid Code G Collection” Mean for Me?

“Code G,” usually found on the consumer payment history section of a credit report, signals that at least one account is in collections. This code is applied if the debt (e.g., credit cards, car loan, personal loan, etc.)  has been past due for quite some time. 

At that point, the lender feels it is necessary to turn it over to a collection agency. This is why “Grid Code G” is applied to your report. Collections can have serious consequences if they end up on your report in error.

How to Clean Up a “Grid Code G” Collection

You don’t want any collections on your credit report. It makes you look less trustworthy to lenders and brings your score down.

In order to clean up a “Grid Code G” collection, keep the following in mind:

  • Simply paying the debt in full will solve this problem, but;
  • Consumer history is kept on credit reports for two years.

So, if your collection is coming close to the two-year mark, you may not want to pay it in full. However, your debt can easily resurface in other ways. It’s best to pay your debt or get on a payment plan with the debt collection agency.

What If a “Grid Code G” Collection Was Added to My Report in Error?

If you see an account in collections that shouldn’t be, contact the credit bureau as well as the lender immediately. You can dispute this just as you would dispute any other credit report error. You should dispute this ASAP as collections are very bad for your overall score.

Bottom Line

If you see a “Grid Code G” collections line on your credit report, it means your debt is overdue and has been turned over to collections. It’s important to remedy this as soon as possible as these types of remarks hurt your credit health.

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If you’re a victim of credit reporting/background check errors, or debt collection harassment, it’s time to take a stand. Contact us today & reclaim your financial future.