Ch 4 Base Segment Field 8

The video explores Base Segment Field #8, "Portfolio Type," from Chapter 4 of the Metro 2 Credit Reporting Resource Guide, aiding readers in using Metro 2 to accurately read credit reports, identify errors, and draft dispute letters to consumer reporting agencies (CRAs). This field is critical because it assigns one of five portfolio types—line of credit, installment, mortgage, open, or revolving—to every credit account, influencing how other fields’ data is reported (e.g., a revolving credit card differs from a mortgage). Metro 2’s standard demands maximum accuracy, yet portfolio type is often missing or mislabeled on reports, creating inconsistencies ripe for disputes.

The five types are detailed: "open" portfolios, for instance, cover accounts due on demand without fixed terms, like utility bills (variable usage, billed monthly) or, notably, all collection accounts—regardless of their original type (e.g., a charged-off revolving credit card becomes "open" when reported by a debt collector). This shift reflects the industry’s logic: collections demand full payment or settlement, not ongoing terms. Confusion arises because reports like TransUnion’s may label this as "account type" instead, overlapping with a separate Metro 2 field (covered later).

Spotting missing, incorrect, or inconsistently reported portfolio types—despite Metro 2’s clear definitions—offers a factual basis to challenge accuracy in dispute letters, leveraging the standard’s own rules.