What Is a Credit Account Status Code (0–8) on UK Credit Reports

Every credit account reported to a UK credit reference agency carries a monthly payment status code. These codes form a standardised numerical record of how an account has been managed over time, running from 0 (payments up to date) through to 8 (account in default). The system is used consistently across the three main UK credit reference agencies — Experian, Equifax, and TransUnion — each of which operates its own credit reporting database and participates in industry data-sharing schemes (CAIS for Experian, INSIGHT for Equifax, and SHARE for TransUnion).

The operation of credit reference agencies in the UK is regulated by the Financial Conduct Authority (FCA). Data protection compliance falls under the oversight of the Information Commissioner's Office (ICO), operating within the framework of the Data Protection Act 2018 and UK GDPR. Industry standards for reporting arrears and defaults are governed by the Principles for the Reporting of Arrears, Arrangements and Defaults at Credit Reference Agencies (PRAAD), developed by SCOR (Steering Committee on Reciprocity) in collaboration with the ICO. The Consumer Credit Act 1974 (as amended) provides the broader consumer credit framework.

This article explains what each status code means, how the system operates, and where common misunderstandings arise.

UK credit reference agencies use a numerical payment status code system to record how a credit account is performing each month. The codes are 0, 1, 2, 3, 4, 5, 6, and 8. There is no status code 7 in the UK system.

• Status 0 means payments are up to date.
• Status 1 through 6 represents escalating months of missed payments, from one month late up to six or more months late.
• Status 8 means the account has been recorded as in default. Despite being the number 8, it does not mean "eight months late" — the designation is a legacy coding convention.

Additional codes exist for specific circumstances: U (unknown or unclassified), D (dormant or inactive), and AR (arrangement to pay).

Lenders submit account status updates to credit reference agencies. Most lenders send these updates on a monthly basis, although there can be a delay between a lender processing the information and the credit reference agency updating its records.

Each month, the lender assigns a status code to the account reflecting the payment performance for that period. The SCOR PRAAD principles describe this as conduct reported "through status codes such as 1, 2 etc which are based on the monthly performance of the account."

When payments are missed, the status code normally increases by one for each month that passes without the arrears being resolved. For example, an account that is one month behind will show status 1; if a second month passes without the arrears being cleared, it moves to status 2, and so on. This progression continues up to a maximum arrears status of 6.

If the account reaches the point where the lender determines that the relationship has broken down, the account may be recorded as status 8 — in default. According to the SCOR PRAAD principles, this may occur when an account is approximately three months in arrears, and normally by the time it reaches six months in arrears, although the precise timing depends on the lender and the type of product.

In most regulated consumer credit cases, the lender must issue a default notice giving at least 14 days to remedy the breach before a default can be registered. This requirement is subject to limited statutory and PRAAD-recognised exceptions, including cases involving fraud, bankruptcy, Individual Voluntary Arrangements (IVAs), or similar insolvency processes.

If a borrower reduces their arrears by making significant payments, the status code may decrease — and in some cases may "jump" downward rather than stepping back one month at a time. Conversely, if arrears continue to accumulate, the code rises one level per month until it reaches 6, where it remains until the lender either registers a default or the borrower brings the account back into order.

The core status codes used across UK credit reference agencies are as follows.

• Status 0 — Payments up to date. The account is being maintained according to its terms and conditions, with no arrears recorded. Some credit reports may display this as "OK" rather than "0."
• Status 1 — Up to one month late. The first missed or late payment has been recorded. The account is in early arrears.
• Status 2 — Up to two months late. Two consecutive months of missed payments have been recorded.
• Status 3 — Up to three months late. Three consecutive months of missed payments have been recorded. According to the SCOR PRAAD principles, by this stage the lender may begin considering further action, such as reporting the account as defaulted.
• Status 4 — Up to four months late. Four consecutive months of missed payments have been recorded.
• Status 5 — Up to five months late. Five consecutive months of missed payments have been recorded.
• Status 6 — Six months or more late. This is the maximum arrears status code. According to the SCOR PRAAD principles, status codes may continue to be reported at 6 "until either the lender takes action and reports the account as being in default or the consumer brings the account back in order."
• Status 8 — Account in default. The lender has formally determined that the relationship has broken down and has registered a default. As a general guide from the SCOR PRAAD principles, this may occur when an account is three months in arrears, and normally by six months in arrears. A default remains on the credit file for six years from the date of default.
• Status U — Unknown or unclassified. The lender cannot provide the account status for this particular month. This may occur at the start of a credit agreement when no payment is yet due, during disputes, or when the account is newly opened.
• Status D — Dormant or inactive. Usage varies by product type and lender; defaults are normally shown as status 8.
• Status AR — Arrangement to pay. An alternative payment arrangement is in force. If the terms of the arrangement are kept, a default would not normally be registered.

Data Retention

Closed or settled accounts remain on a credit file for six years from the date of closure or settlement. For accounts that have been recorded as in default, the retention period is six years from the date of default — not from the date the account was subsequently closed or settled.

"Status 8 means eight months late."

This is incorrect. Status 8 indicates that the account has been formally recorded as in default. The number 8 is a legacy coding convention and does not correspond to eight months of missed payments. Defaults can be registered considerably earlier than eight months — the SCOR PRAAD principles indicate this may happen from around three months of arrears onward.

"There must be a status 7."

Status code 7 does not exist in the UK credit account status code system. The codes run 0 through 6, then skip to 8. All authoritative UK credit reference agency documentation — from TransUnion, Equifax, and the SCOR PRAAD principles — consistently confirms that the UK system uses codes 0–6 and 8 only.

"My credit file should look the same at all three agencies."

Not all lenders report to all three credit reference agencies. Some lenders may report to only one or two, which means the information held by Experian, Equifax, and TransUnion can differ for the same individual.

"If I bring my payments up to date, the old status codes disappear."

The monthly payment history remains on the credit file as a historical record. Bringing payments up to date means the current month's status code will reflect the improved position, but previous months' codes continue to be held for the standard retention period.

"A default notice and a default registration are the same thing."

They are not. A default notice is a formal warning that must, in most regulated consumer credit cases, be issued at least 14 days before the default is actually registered on the credit file. The notice gives the borrower a defined period to remedy the breach before the default is recorded.

Current Accounts (Overdrafts)

Current accounts use a modified version of the payment status codes compared to other credit products. According to TransUnion documentation, the codes for current accounts operate as follows:

• Status 0: The account is in credit, not overdrawn, or managed within its agreed terms.
• Status 1: Agreed repayments are one to two months behind, or the overdraft has exceeded the agreed limit for one to two months.
• Status 2: Agreed repayments are two to three months behind, or the overdraft has exceeded the agreed limit for two to three months.
• Status 3: Agreed repayments are more than three months behind, or the overdraft has exceeded the agreed limit for more than three months.
• Status 4, 5, and 6: Agreed repayments are more than three months behind but a new repayment agreement is in place.
• Status D: Default. This differs from the standard credit product scale and reflects the different nature of current account lending.

Secured Loans, Mortgages, and Long-Term Products

Some product types may have extended timelines before a default is registered. The SCOR PRAAD principles specifically note exceptions for "secured or long term loans e.g. mortgages, or if the product operates in a more flexible way e.g. current accounts, student loans, home credit." This means that for these products, a default may be recorded at a later stage than the general three-to-six-month guidance.

Home Credit (Weekly Collected Credit)

Home credit products involve non-monthly repayment structures, typically weekly collections. The SCOR PRAAD principles note that home credit reporting has been adapted to meet monthly reporting standards. Informal flexibility — such as missed or part payments agreed during home visits — is not reported until aggregate missed payments reach the equivalent of one month's arrears, which corresponds to approximately 4.33 weekly repayments.

Exceptions to Normal Arrears Progression

While status codes generally increase by one month at a time as payments are missed, the SCOR PRAAD principles note that exceptions to this normal progression can occur in cases involving fraud, bankruptcy, County Court Judgments (CCJs), or returned cheques or direct debits.

Exceptions to Default Notice Requirements

In most regulated consumer credit cases, a lender must issue a default notice before registering a default. However, this requirement does not apply in certain circumstances, including fraud, bankruptcy, IVAs, or similar insolvency processes.

The payment status code system creates a month-by-month record of how each credit account has been managed. This record is visible to any organisation that conducts a credit search (where it has lawful grounds to do so) and forms part of the historical data held on an individual's credit file.

Status 0 each month indicates an account maintained within its agreed terms. Any status code above 0 indicates that, for that particular month, the account was not being maintained in line with its terms. The higher the number, the longer the period of missed payments at that point in time.

When an arrangement to pay is in place and its terms are being met, the AR status code is recorded. This indicates that while the original terms are not being met, an alternative agreement exists and is being honoured.

The six-year retention rule for defaults means that a default registered today will remain on the credit file for six years from the date it was registered — regardless of when the debt is subsequently paid or settled. For accounts without a default, closure or settlement triggers a separate six-year retention period running from the date of that closure or settlement.

Because lenders report to credit reference agencies on a monthly cycle, and because there can be processing delays, the information shown on a credit file at any given moment may not reflect the very latest position. The data is a snapshot based on the most recent update received from the lender.

• Standard Scale: The UK credit account status code system uses codes 0–6 and 8 to record payment performance on a monthly basis. Code 7 is not used.
• Status 0: Indicates payments are up to date.
• Status 1-6: Reflect escalating months of arrears.
• Status 8: Indicates the account has been recorded as in default.
• Special Codes: U (unknown), D (dormant), and AR (arrangement to pay).
• Default Notice: In most regulated consumer credit cases, defaults must be preceded by a default notice giving at least 14 days to remedy the breach.
• Retention: A default remains on the credit file for six years from the date of default, regardless of when the debt is subsequently paid.
• Exceptions: Current accounts use a modified version of the system. Mortgages and weekly home credit may follow different timelines.