Glossary of terms

 

 

Account Condition Indicates the present state of the account, but does not indicate the payment history of the account that led to the current state. (i.e. open, paid, charge off, repossession, settled, foreclosed, etc).
Account number The unique number assigned by a creditor to identify your account with them.
Accounts in Good Standing This section lists credit items that have a positive status and should reflect favorably on your creditworthiness. It includes the creditor's name and address, your account number, the status, type and terms of the account, and additional information as reported to us by your creditors. Some creditors may not report to us, so all of your accounts may not be listed.
Adjustment This is the percentage of the debt that is to be repaid to the credit grantors in a Chapter 13 bankruptcy.
AKA Also Known As
Application scoring The use of a statistical model to objectively evaluate and "score" credit applications and credit bureau data in order to assess likely future performance. Scores help businesses make decisions such as whether to accept or decline the application.
Association Code Describes the consumer's relationship to an account
Authorized User Person permitted by a credit cardholder to charge goods and services on the cardholder's account. If you wish to have your name permanently removed as an authorized user on an account, you will need to notify the credit grantor.
Balloon Payments A loan with a balloon payment requires that a single, lump-sum payment be made at the end of the loan.
Bankruptcy A proceeding in U.S. Bankruptcy Court that may legally release a person from repaying debts owed. Credit reports normally include bankruptcies for up to 10 years.
Bankruptcy Code Federal laws governing the conditions and procedures under which persons claiming inability to repay their debts can seek relief.
Capacity Factor in determining creditworthiness. Capacity is assessed by weighing a borrower's earning ability and the likelihood of continuing income against the amount of debt the borrower carries at the time the application for credit is made.
Chapter 7 Bankruptcy Chapter of the Bankruptcy Code that provides for court administered liquidation of the assets of a financially troubled individual or business.
Chapter 11 Bankruptcy Chapter of the Bankruptcy Code that is usually used for the reorganization of a financially troubled business. Used as an alternative to liquidation under Chapter 7. The U.S. Supreme Court has held that an individual may also use Chapter 11.
Chapter 12 Bankruptcy Chapter of the Bankruptcy Code adopted to address the financial crisis of the nation's farming community. Cases under this chapter are administered like Chapter 11 cases, but with special protections to meet the special conditions of family farm operations.
Chapter 13 Bankruptcy Chapter of the Bankruptcy Code in which debtors repay debts according to a plan accepted by the debtor, the creditors and the court. Plan payments usually come from the debtor's future income and are paid to creditors through the court system and the bankruptcy trustee.
Charge-Off Action of transferring accounts deemed uncollectible to a category such as bad debt or loss. Such accounts will usually continue to be worked by collectors, but are no longer considered part of a company's receivable or profit picture.
Civil Action Any court action against a consumer to regain money for someone else. Usually, it will be a wage assignment, child support judgment, small claims judgment or a civil judgment.
Claim amount The amount awarded
Closed Date The date the account was closed.
Co-maker A creditworthy co-maker is sometimes required in situations where an applicant's qualifications are marginal. A co-maker is legally responsible to repay the charges in the joint account agreement.
Collection Attempted recovery of a past-due credit obligation by a collection department or agency.
Consumer Credit Counseling Service A non-profit organization that assists consumers in dealing with their credit problems. Consumer Credit Counseling Service has offices throughout the United States that can be located by calling 1-800-388-CCCS (2227).
Consumer credit file A credit bureau record on a given individual. It may include: consumer name, address, Social Security number, credit history, inquiries, collection records, and public records such as bankruptcy filings and tax liens.
Co signer Person who pledges in writing as part of a credit contract to repay the debt if the borrower fails to do so.
Credit bureau   A credit reporting agency that is a clearinghouse for information on the credit rating of individuals or firms. Is often called a "credit repository" or a "consumer reporting agency". The three largest credit bureaus in the U.S. are Equifax, Experian and TransUnion.
Credit bureau risk score A type of credit score based solely on data stored at the major credit bureaus. It offers a snapshot of a consumer's credit risk at a particular point in time, and rates the likelihood that the consumer will repay debts as agreed.
Credit history A record of how a consumer has repaid credit obligations in the past.
Credit Limit/Line of Credit In open-end credit, the maximum amount a borrower can draw upon or the maximum which an account can show as outstanding.
Credit obligation An agreement by which a person is legally bound to pay back borrowed money or used credit.
Credit items Information reported by current or past creditors.
Credit Report Confidential report on a consumer's payment habits as reported by their creditors to a consumer credit agency. The agency provides the information to credit grantors who have a permissible purpose under the law to review a consumer's report.
Credit risk The likelihood that an individual will pay his or her credit obligations as agreed. Borrowers who are more likely to pay as agreed pose less risk to creditors and lenders.
Credit Scoring Tool used by credit grantors to provide an objective means of determining risks in granting credit. Credit scoring increases efficiency and timely response in the credit granting process. Credit scoring criteria is set by the credit grantor.
Creditworthiness The ability of a consumer to receive favorable consideration and approval for the use of credit from an establishment to whom they applied.
Date filed The date that a public record was awarded.
Date of Status On the credit report, date the creditor last reported information about this account.
Date Opened On the credit report, indicates the date an account was opened.
Date resolved The completion date of satisfaction date or a public record item.
Default A failure to make a loan or debt payment when due. Usually an account is considered to be "in default" after being delinquent for several consecutive 30-day billing cycles.
Delinquent Accounts classified into categories according to the time past due. Common classifications are 30, 60, 90 and 120 days past due. Special classifications also include charge-off, repossession, transferred, etc.
Direct Marketing Names and addresses of consumers are obtained from a credit bureau based on a number of criteria requested by a store or company. Then the consumer receives a mailing, generally offering a product or service. Catalogs are the largest users of direct marketing.
Discharge Granted by the court to release a debtor from most of his debts that were included in a bankruptcy. Any debts not included in the bankruptcy, alimony, child support, liability for willful and malicious conduct and certain student loans cannot be discharged.
Dismissed When a consumer files a bankruptcy, the judge may decide to not allow the consumer to continue with the bankruptcy. If the judge rules against the petition, the bankruptcy is known as dismissed.
Disclosure Giving the consumer the nature and substance of what is in his or her credit report as outlined by the FCRA.
ECOA Standard abbreviation for Equal Credit Opportunity Act. This is a law passed by Congress that ensures that all consumers will be given an equal chance to receive credit. The ECOA says it is illegal for creditors to discriminate against applicants on the basis of their sex, marital status, race, national origin, age or because they get public assistance income.
End-user If a company made an inquiry to a consumer's credit report for someone else, this is the name of the person who originally requested the report.
Equal Credit Opportunity Act Federal law which prohibits creditors from discriminating against credit applicants on the basis of sex, marital status, race, color, religion, age, and/or receipt of public assistance.
Equifax One of the three major credit reporting agencies, headquartered in Atlanta, Ga. The other two are Experian and TransUnion.
Experian One of the three major credit reporting agencies, headquartered in Costa Mesa, Ca. The other two are Equifax and TransUnion.
Fair Credit and Charge Card Disclosure Act Amendments to Truth In Lending Act that require the disclosure of the costs involved in credit card plans that are offered by mail, telephone or applications distributed to the general public.
Fair Credit Billing Act Federal legislation that provides a specific error resolution procedure to protect credit card customers from making payments on inaccurate billings.
Fair Credit Reporting Act Federal legislation governing the actions of credit reporting agencies. Promotes the accuracy, confidentiality and proper use of information in the files of every "consumer reporting agency". The FCRA was enacted in 1970.
Fair Credit Reporting Act (FCRA) Federal legislation governing the actions of credit reporting agencies. Promotes the accuracy, confidentiality and proper use of information in the files of every "consumer reporting agency". The FCRA was enacted in 1970.
Fair Debt Collection Practices Act Federal legislation prohibiting abusive and unfair debt collection practices.
FICO® scores Credit bureau risk scores produced from models developed by Fair Isaac Corporation are commonly known as FICO scores. Fair Isaac credit bureau scores are used by lenders and others to assess the credit risk of prospective borrowers or existing customers, in order to help make credit and marketing decisions. These scores are derived solely from the information available on credit bureau reports.
Finance Charge Amount of interest. Finance charges are usually included in the monthly payment total.
Fixed Rate An annual percentage rate that does not change.
Generation Identifier Generation identifiers are Jr., Sr., II, III, IV,etc.
Geographical code This information is received from the Census Bureau and represents the state, Metropolitan Statistical Area, county, tract and block group of the reported address. This code is similar to a ZIP code.
Guarantor Person responsible for paying a bill.
High balance The highest amount that you have owed on an account to date.
Installment Credit Credit accounts in which the debt is divided into amounts to be paid successively at specified intervals.
Inquiry An item on a consumer's credit report that shows that someone with a "permissible purpose" (under FCRA rules) has previously requested a copy of the consumer's report. Fair Isaac credit bureau risk scores take into account only inquiries resulting from a consumer's application for credit.
Installment debt-  Debt to be paid at regular times over a specified period. Examples of installment debt include most mortgage and auto loans.
Insurance bureau score  An insurance rating based solely on credit bureau data stored at the major credit bureaus. It offers a snapshot of an individual's insurance risk at a particular point in time, and helps insurers evaluate new and renewal auto and homeowner insurance policies.
Investigation The process a consumer credit reporting agency goes through in order to verify credit report information disputed by a consumer. The credit grantor who supplied the information is contacted and asked to review the information and report back; they will tell us that the information is accurate as it appears, or they will give us corrected information to update the report.
Investigative Consumer Reports These are consumer reports that are usually done for background checks, security clearances and other sensitive jobs. An investigative consumer report might contain information obtained from a credit report, but it is more comprehensive than a credit report. It contains subjective material on an individual's character, habits and mode of living, which is obtained through interviews of associates.
Involuntary Bankruptcy A petition filed by certain credit grantors to have a debtor judged bankrupt. If the bankruptcy is granted, it is known as an involuntary bankruptcy.
Item-specific Statement Offers an explanation about a particular trade or public record item on your report, and it appears with that item on the credit report. Only one item specific statement may be added to an item.
Judgment Granted The determination of a court upon matters submitted to it; a final determination of the rights of the parties involved in the lawsuit.
Last Reported On the credit report, the date the creditor last reported information about the account.
Late payment A delinquent payment; a failure to deliver a loan or debt payment on or before the time agreed.
Liability amount Amount for which you are legally obligated to a creditor.
Lien Legal document used to create a security interest in another's property. A lien is often given as a security for the payment of a debt. A lien can be placed against a consumer for failure to pay the city, county, state or federal government money that is owed. It means that the consumer's property is being used as collateral during repayment of the money that is owed.
Line of Credit In open-end credit, the maximum amount a borrower can draw upon or the maximum which an account can show as outstanding.
Location number The book and page number on which the item is filed in the court records.
Mortgage Identification Number (MIN) Indicates that a loan is registered with Mortgage Electronic Registration Systems Inc., which tracks the ownership of mortgage rights. This number will follow the homeowner throughout the mortgage.
Most Recent Date The date of the recent account condition or payment status. This date is also the balance date.
Notice of Results If your investigation results in information being updated or deleted, you may request that we send the corrected information in your credit history to eligible credit grantors and employers who reviewed your information within a specific period of time. If your investigation does not result in a change to your credit history, the results will not be sent.
Obsolescence A term used to describe how long negative information should stay in a credit file before it's not relevant to the credit granting decision. The FCRA has determined the obsolescence period to be 10 years in the case of bankruptcy and 7 years in all other instances. Unpaid tax liens may remain indefinitely.
Opt In The ability of a consumer who has opted out to have their name re-added to prescreened credit and insurance offer lists, direct marketing lists and individual Reference service lists. Consumers may opt in to receive prescreened credit and insurance offer lists by calling 1 888 5OPTOUT (1 888 567 8688).
Opt Out The ability of the consumer to notify credit reporting agencies, direct marketers and list compilers to remove their name from all future lists. Consumers may opt out of prescreened credit and insurance offer lists by calling 1 888 5OPTOUT (1 888 567 8688).
Original amount The original amount owed to a creditor.
Payment Status Reflects the previous history of the account, including any delinquencies or derogatory conditions occurring during the previous seven years (i.e., Current account, delinquent 30, current was 60, redeemed repossession, charge-off - now paying, etc.)
Permissible Purposes There are legally defined permissible purposes for a credit report to be issued to a third party. Permissible purposes include credit transactions, employment purposes, insurance underwriting, government financial responsibility laws, court orders, subpoenas, written instructions of the consumer or legitimate business needs.
Personal Information Includes information associated with your records that has been reported to us by you, your creditors and other sources. It may include name variations, your driver's license number, Social Security number variations, your date or year of birth, your spouse's name, your employers, your telephone numbers, and information about your residence. As part of our fraud prevention program, a notice with additional information may appear in this section.
Personal Statement A general explanation about the information on your report that will appear at the beginning of your report.
Petition If a consumer files a bankruptcy, but a judge has not yet ruled that it can proceed, it is known as bankruptcy petitioned.
Plaintiff One who initially brings legal action against another (defendant) seeking a court decision.
Point Scoring Refers to the assignment of values to a number of characteristics identified as indicators of a person's creditworthiness (e.g., past history) and is based on the same evaluation process used by a credit grantor in the analysis of an applicant's creditworthiness.
Potentially Negative Items This section of the credit report lists any potentially negative credit items or public records that may have an effect on your creditworthiness as viewed by creditors. It includes the creditor's name and address, your account number, the status, type and terms of the account, and additional information as reported to us by your creditors. It also includes bankruptcy, lien or judgment information obtained directly from the courts.
Public Record Data Included as part of the credit report, this information is limited to tax liens, lawsuits and judgments that relate to the consumer's debt obligations.
Recent balance The most recent balance owed on an account as reported by the creditor.
Recent payment The most recent amount paid on an account as reported by the creditor.
Released This means that a lien has been satisfied in full.
Reported Since On the credit report, the date the creditor started reporting your to the credit bureau.
Repossession A creditor's taking possession of property pledged as collateral on a loan contract on which a borrower has fallen significantly behind in payments.
Request an Investigation If you believe that information on your report is inaccurate, we will ask the sources of the information to check their records at no cost to you. Incorrect information will be corrected; information that cannot be verified will be deleted. Accurate information cannot remove. An investigation may take up to 30 days. When it is complete, the bureaus will  send you the results.
Request for Your Credit History When a credit grantor, direct marketer or potential employer makes a request for information from a consumer's credit report, an inquiry is shown on the report. Grantors only see credit inquiries generated by other grantors as a result of an application of some kind, while consumers see all listed inquiries including prescreened and direct marketing offers, as well as employment inquiries. According to the Fair Credit Reporting Act, credit grantors with a permissible purpose may inquire about your credit information prior to your consent. This section also includes the date of the inquiry and how long the inquiry will remain on your report.
Responsibility Indicates who is responsible for an account; can be single, joint, co-signer, etc.
Revolving Account Credit automatically available up to a predetermined maximum limit so long as a customer makes regular payments.
Revolving debt Debt owed on an account that the borrower can repeatedly use and pay back without having to reapply every time credit is used. Credit cards are the most common type of revolving account.
Risk Scoring Models A numerical determination of a consumer's creditworthiness. Tool used by credit grantors to predict future payment behavior of a consumer.
Satisfied If the consumer has paid all of the money the court says he owes, it is known as satisfied.
Scoring model   A statistical formula that is used, usually with the help of computers, to estimate future performance of prospective borrowers and existing customers. A scoring model calculates scores based on data such as information on a consumer's credit report.
Secured Credit Loan for which some form of acceptable collateral, such as a house or automobile, has been pledged.
Security Real or personal property that a borrower pledges for the term of a loan. Should the borrower fail to repay, the creditor may take ownership of the property by following legally mandated procedures.
Security Alert Statement that is added once a bureau is notified that a consumer may be a victim of fraud. It remains on file for 90 days and requests that a creditor request proof of identification before granting credit in that person's name. Once a security alert has been added, your report is no longer available for online viewing.
Security Alert Message or Victim Statement Alerts anyone reviewing your information that certain precautions should be taken because you believe that you are a victim of fraud. It will appear at the beginning of your report. Once you add the security alert message or victim statement, your report will no longer be available for online viewing.
Service Credit Agreements with service providers. You receive goods, such as electricity, and services, such as apartment rental and health club memberships, with the agreement that you will pay for them each month. Your contract may require payments for a specific number of months, even if you stop the service.
Source The business or organization that supplied certain information that appears on the credit report.
Status On the credit report, this indicates the current status or state of the account.
Terms This refers to the terms of your agreement with a creditor, such as 60 months, 48 months, etc.
Third-Party Collectors Collectors who are under contract to collect debts for a credit department or credit company; collection agency.
Trade line Entry by a credit grantor to a consumer's file maintained by a credit-reporting agency. A tradeline describes the consumer's account status and activity. Tradeline information includes names of companies where the applicant has accounts, date accounts were opened, credit limits, type of accounts, balances owed and payment profiles.
Transaction fees Fees charged for certain use of your credit line - for example, to get a cash advance from an ATM.
TransUnion One of three major credit-reporting agencies.The other two are Experian and Equifax.
Truth in Lending Act Title I of the Consumer Protection Act. Requires that most categories of lenders disclose the annual interest rate, the total dollar cost and other terms of loans and credit sales.
Type This refers to the type of credit agreement made with a creditor; for example, a revolving account or installment loan.
Type of credit (usually revolving or installment) On the credit report, explains the history of the account that led to the current status.
Unsecured Credit Credit for which no collateral has been pledged. Loans made under this arrangement are sometimes called signature loans; in other words, a loan is granted based only on the customer's words, through signing an agreement that the loan amount will be paid.
Vacated Indicates a judgment that was rendered void or set aside.
Variable Rate An annual percentage rate that may change over time as the prime lending rate varies or according to your contract with the lender.
Verification Verifying whether data in a credit report is correct or not. Initiated by consumers when they question some information in their file. Credit bureaus will accept authentic documentation from the consumer that will help in the verification.
Victim Statement A statement that can be added to a consumer's credit report to alert credit grantors that a consumer's identification has been used fraudulently to obtain credit. The statement requests the credit grantor to verbally contact the consumer by telephone before issuing credit. It remains on file for 7 years unless the consumer requests to have it removed.
Voluntary Bankruptcy If a consumer files the bankruptcy on his own, it is known as voluntary bankruptcy.
Wage assignment A signed agreement by a buyer or borrower, permitting a creditor to collect a certain portion of the debtor's wages from an employer in the event of default.
Withdrawn This means a decision was made to not pursue a bankruptcy, a lien, etc.
Writ of Replevin Legal document issued by a court authorizing repossession of security.

 

 

 

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