Metro 2 Status Codes 93 & 62 After Pay Settlement Explained?

Code 93 appears when a collection account is marked "settled" in the Metro 2 reporting system. A settled status indicates that the borrower has paid a portion of the original balance, but the amount paid is less than the full amount owed. The account remains a collection, but the balance is recorded as "settled" rather than "open" or "paid in full."

Code 62 is used when the same collection account later receives a "paid" update, meaning the borrower has satisfied the entire balance-either through a new payment that clears the residual amount or because the creditor has written off the remaining debt. After the transition from code 93 to code 62, the Metro 2 file reflects the account as fully paid, although the original collection notation typically remains on the credit report for the standard 7-year reporting period.

Example 1: Jane's credit file shows a $2,200 medical collection. The creditor reports a payment of $1,200, and Metro 2 assigns code 93. Six months later, Jane pays the remaining $1,000; the creditor updates the file, and Metro 2 replaces code 93 with code 62.

Example 2: Mark negotiates a settlement on a $3,500 auto loan collection, paying $2,000. The account is reported with code 93. If the lender later forgives the $1,500 balance without further payment, the account may still be updated to code 62 to indicate it is now "paid," even though the original settlement amount was less than the full balance.

Even after you've paid an account in full, the Metro 2 record may still show code 93 or code 62 because the creditor hasn't updated the status field; the system only changes the code when the lender files a corrected report, which can take 30-45 days after the payment is processed. While the balance column will display zero, the lingering code can confuse lenders who pull your file and see a "paid" tag attached to a "settled" or "collection" status, potentially affecting how new credit is extended.

How to get the code corrected:

• Contact the original creditor or collection agency and request a "re-report" confirming the account is paid in full.
• Provide a copy of the payment receipt or settlement confirmation and ask them to submit a Metro 2 update with the appropriate status (code 00 for a closed, paid account).
• Follow up with the credit bureaus (Equifax, Experian, TransUnion) by filing a dispute that includes the payment proof and a note that the creditor has agreed to amend the code.
• Keep a record of all communications; if the creditor does not respond within 45 days, you may request the bureaus to remove the inaccurate code based on the supporting documentation.

These steps typically result in the code changing to reflect the true paid-in-full status, removing the lingering "settled" label from your credit file.

When a debt is settled-meaning the borrower paid less than the full balance-the creditor often updates the account to code 93 or code 62 in the Metro 2 reporting system. However, the collection status can linger because the underlying account remains open until the creditor files the proper amendment. Credit bureaus typically receive the amendment within 30-45 days, but delays in processing or a missed update can cause the original collection tag to persist on the consumer's report, even though the balance is no longer outstanding.

During this interim period the account may still appear as a collection, which can be confusing for lenders reviewing the report. The distinction between settled and paid is crucial: a settled account still carries a collection marker until the amendment is recorded, while a paid account is cleared and shows a zero balance. Consumers can monitor their credit file for the transition from code 93 or code 62 to a "paid in full" notation and, if the status does not change after the expected window, request a correction from the reporting agency.

settled for less than the full balance. Because the Metro 2 reporting system records the account as "settled," most scoring models treat it as a negative event, but the penalty is typically milder than that applied to an open collection.

The account remains on the credit report for the standard 7-year period, yet the reduced-balance notation often results in a smaller dip-usually a few points-within the 300-850 score range. Lenders may view a settled account as a sign that the borrower eventually addressed the debt, which can soften the impact on future credit-worthiness assessments.

paid in full. When the Metro 2 system updates the status to "paid," the negative weight is generally removed more quickly, and the account's contribution to the overall score improves more noticeably.

Although the account still occupies the report for up to seven years, its paid designation signals complete resolution, which can lead to a larger score rebound-often tens of points-especially after the 30-45-day update window. In practice, a paid status tends to be viewed more favorably than a settled one, making code 62 less damaging to the credit score than code 93.

• A settled account (code 93) shows that the borrower negotiated a payment lower than the full balance; the Metro 2 file records the "settled" status, indicating the obligation was partially satisfied.
• A paid account (code 62) reflects that the borrower fulfilled the entire balance as originally owed; Metro 2 marks the account as "paid in full," signaling complete satisfaction of the debt.
• Credit reporting treats settled accounts as less favorable than paid accounts because the reduced-payment notation suggests the original debt was not fully honored, which may weigh slightly more negatively on a FICO-style score (300-850).
• Both settled and paid accounts will eventually transition to "closed" status after the typical 7-year reporting window, but the initial designation (settled vs. paid) remains on the consumer file for the duration of that period.
• Lenders and scoring models often view a settled status as a partial risk mitigation, whereas a paid status is considered a full risk elimination, affecting eligibility for new credit in subtly different ways.
• The distinction also influences how future inquiries are interpreted; a settled account may trigger higher scrutiny during underwriting compared with a paid account, which is generally seen as a clean resolution.

The length of time an account has been on your report can affect the weight a credit model assigns to it, but the influence is usually secondary to the nature of the derogatory event. An account that is five years old will generally be viewed more leniently than a brand-new one, yet a "settled" status-whether marked by code 93 or code 62-still signals that the original obligation was not fully satisfied. Most scoring algorithms treat settled balances as a negative marker, though they often apply a smaller penalty than an open collection.

code 93, which denotes a "settled for less than full balance" entry, tends to carry a slightly higher impact than code 62, which indicates a "settled after partial payment" but still reflects a compromise on the original debt. Both codes signal that the creditor accepted less than the full amount, and that fact typically outweighs the account's age when the model calculates risk. In practice, a recent settlement with code 93 may dent a score more than an older account carrying code 62, even though the older entry has been around longer.

In the 300-850 credit score range, the combined effect of age and status usually results in a modest decline-often between 10 and 30 points-for settled accounts. The decline is typically less severe than the drop caused by an open collection, but it can linger for up to seven years from the original delinquency date. Over time, as the account ages and newer positive activity builds, the relative impact of either code diminishes, allowing the score to recover gradually.

When a Metro 2 file still shows code 62 after a settlement, the account is marked as "settled" but not yet updated to a paid status. Credit bureaus usually refresh the status within 30-45 days, yet a lingering code 62 can keep the record from reflecting the full payment. The following three actions typically prompt the necessary update.

1. Obtain a written confirmation of the settlement - Request a letter from the creditor or collection agency that explicitly states the account was settled for a specific amount and that the balance is now zero. The document should include the account number, settlement date, and a statement that the account will be reported as paid.
2. Submit a formal dispute to each credit bureau - Use the creditor's confirmation to file a dispute online or by mail, citing Metro 2 code 62 as the current entry and requesting correction to code 93 (paid). Attach the settlement letter and keep copies of all correspondence. Bureaus are required to investigate within 30 days and should update the file if the documentation is clear.
3. Follow up with a verification request - If the dispute resolution does not change the status, send a verification request asking the bureau to provide the source of the persisted code 62. Include the original settlement letter again and reference the prior dispute case number. This step often leads the bureau to contact the creditor for clarification, resulting in the transition from code 62 to a paid status.

activity date in your payment history marks the exact day a reporting event-such as a payment, a settlement, or a status change-was recorded by the Metro 2 system, and it is the point from which the 30- to 45-day update cycle begins; this date does not necessarily coincide with the calendar date you actually made the payment, but rather reflects when the creditor or collection agency submitted the information to the credit bureaus, which then triggers the entry to appear on your credit report.

Because the activity date drives the timeline for how long the account will remain on your report (typically up to seven years from the first adverse action), it also determines when any subsequent changes, like a transition from code 93 to code 62 after a partial settlement, will be visible to lenders and may affect scoring models that weigh recent activity more heavily than older records. Understanding that the activity date is a reporting milestone-not a guarantee of payment timing-helps you anticipate when your settled balance will be reflected, monitor for possible "phantom" balances that can linger if the date is entered incorrectly, and plan any follow-up actions within the usual 30- to 45-day window to ensure your credit file stays as accurate as possible.

After a pay settlement is recorded, the Metro 2 file often retains a residual amount labeled as a "phantom balance." This occurs because the creditor reports the account as settled (paid for less than the full balance) but also includes the original balance in the activity date field. The system then interprets the entry as an unpaid portion that still exists, even though the consumer has fulfilled the agreed-upon settlement amount.

• The creditor may submit a code 93 (account settled for less than full balance) while also attaching the original balance as the current amount owed.
• A code 62 (account settled) can appear alongside a "balance zero" indicator, yet the accompanying activity date reflects the date the debt was originally incurred, causing the bureau to display the old balance for up to 30 days.
• Some lenders use a separate "settlement amount" field that is not automatically reconciled with the primary balance field, leaving the older figure visible on the credit report.

Because the phantom balance is a reporting artifact rather than an actual debt, it typically disappears after the next reporting cycle-usually within 30-45 days-once the bureau processes the corrected data. If the amount persists beyond that window, contacting the creditor to request a corrected Metro 2 submission can help clear the erroneous owed amount.

When a creditor updates a file with code 93 after you have reached a paid settlement, the account is marked as "settled" rather than "paid in full." Because the balance was reduced, the original collection remains on your report for the standard 7-year period, but the status change itself does not reset the reporting clock. If you notice an error-such as the account still showing an open balance or an incorrect dates of first delinquency-you can file a dispute with the credit bureau. Include a copy of the settlement confirmation, point out the specific line where code 93 appears, and request that the bureau verify the entry against the original contract. The bureau typically has 30 days to investigate, and the original reporting dates should stay intact as long as the settlement was properly documented.

A similar process applies to code 62, which signals that a previously settled account has been paid in full after additional payments. Because code 62 also does not restart the 7-year timeline, you may dispute any lingering "past-due" notations without fearing a new reporting period. Attach the final payment receipt, reference the code 62 entry, and ask the bureau to correct the status to "paid." Successfully disputing these entries can improve the narrative of the account while preserving the original age, which is generally more favorable to your credit score than a fresh collection.

When a creditor updates a file and you see the status flip back to code 62 after you have already received a settled notification, the most common culprits are timing mismatches or data entry errors. The Metro 2 reporting system allows a code 62 entry to linger for up to 45 days while the creditor processes the final payment; during that window a subsequent code 93 may be posted, only to be overwritten later when the creditor's batch file is regenerated. Typical triggers include • a late submission of the settlement proof, • an automatic re-run of the creditor's monthly export that still contains the pre-settlement status, and • a manual correction where the original code 93 entry was never fully cleared.

code 62 indicates a collection that is still open, credit bureaus will treat the account as unsettled until the code 93 entry is confirmed and remains in the file for the standard 30-45 day reporting period. If the code 93 disappears, the bureau reverts to the older code 62, which can momentarily affect the account's perceived risk. Monitoring the file for a stable code 93 over the next few weeks usually resolves the discrepancy, but if the status continues to revert, a follow-up request to the creditor for a corrected Metro 2 submission may be necessary.