Credit Repair Terms For Everyday Use

Sure! Here’s a glossary of 100 credit repair terms, including definitions to help you better understand the credit industry:

Glossary of 100 Credit Repair Terms

1. Account in Good Standing – A credit account that is current and has no late payments.
2. Adverse Action – A negative decision by a lender, such as denying credit or increasing interest rates.
3. Annual Percentage Rate (APR) – The yearly interest rate charged on borrowed money.
4. Authorized User – A person who is allowed to use another person’s credit account but is not responsible for repayment.
5. Bankruptcy – A legal process for individuals or businesses that can’t repay their debts.
6. Billing Cycle – The period between credit card statements.
7. Charge-Off – A debt deemed unlikely to be collected, written off by the creditor but still owed.
8. Collections – The process of a creditor or agency pursuing payment on overdue debt.
9. Consumer Credit Counseling – A service that helps individuals manage their debt and finances.
10. Consumer Reporting Agency – An organization that collects and provides credit information (e.g., Equifax, Experian, TransUnion).
11. Credit – The ability to borrow money or access goods/services with the agreement to pay later.
12. Credit Bureau – A company that compiles credit reports (same as a consumer reporting agency).
13. Credit Counseling – A service that provides education and assistance to help consumers manage debt.
14. Credit Freeze – A tool to prevent new credit accounts from being opened in your name.
15. Credit Limit – The maximum amount you can borrow on a credit account.
16. Credit Monitoring – A service that tracks changes to your credit report.
17. Credit Report – A detailed history of your credit activity and status.
18. Credit Reporting Agency – Another term for a credit bureau.
19. Credit Repair – The process of improving a poor credit score or correcting credit errors.
20. Credit Score – A numerical expression of a person’s creditworthiness.
21. Creditor – A person or company that lends money or extends credit.
22. Credit Utilization Ratio – The amount of credit used compared to your total available credit.
23. Debt Consolidation – Combining multiple debts into a single loan or payment.
24. Debt Management Plan (DMP) – An agreement to repay debts through a credit counseling agency.
25. Debt Settlement – Negotiating with creditors to pay less than the full amount owed.
26. Default – Failing to repay a debt as agreed.
27. Delinquency – Late payment on a credit account.
28. Dispute – A formal challenge to incorrect information on a credit report.
29. FCRA (Fair Credit Reporting Act) – A law regulating the collection and use of credit information.
30. FDCPA (Fair Debt Collection Practices Act) – A law that limits how debt collectors can contact consumers.
31. FICO Score – A common credit scoring model developed by Fair Isaac Corporation.
32. Fraud Alert – A notice on a credit report indicating possible identity theft.
33. Hard Inquiry – A credit check that may affect your credit score, usually when applying for credit.
34. Installment Loan – A loan repaid with regular payments over time (e.g., car loan).
35. Interest Rate – The cost of borrowing money.
36. Late Fee – A charge for missing a payment due date.
37. Lien – A legal right to someone else’s property until a debt is paid.
38. Loan Term – The length of time to repay a loan.
39. Minimum Payment – The smallest amount required to keep a credit account in good standing.
40. Negative Item – Any derogatory record on a credit report, like late payments or collections.
41. Open Account – An account that is currently active and usable.
42. Original Creditor – The first company that extended credit to a borrower.
43. Payment History – A record of payments made, which strongly affects credit scores.
44. Pay-for-Delete – A request to remove negative information from a credit report in exchange for payment.
45. Pre-Approval – Conditional approval for credit based on a preliminary review.
46. Public Record – Financial information, such as bankruptcies, available through government sources.
47. Re-aging – Resetting the delinquency date of an account, which can be illegal if done improperly.
48. Revolving Credit – A type of credit that renews as debt is paid down, like credit cards.
49. Score Factor – Elements that impact your credit score, such as utilization and payment history.
50. Secured Credit Card – A card backed by a cash deposit, typically used to build credit.
51. Settlement – An agreement to pay less than the full debt owed.
52. Soft Inquiry – A credit check that does not affect your credit score.
53. Subprime Borrower – A person with poor credit who may be offered less favorable loan terms.
54. Tradeline – A record of activity for any credit account on a report.
55. TransUnion – One of the three major credit bureaus.
56. Utilization Rate – See Credit Utilization Ratio.
57. Unsecured Debt – Debt not backed by collateral (e.g., credit cards).
58. VantageScore – A credit score model developed by the three major bureaus.
59. Write-Off – Another term for charge-off.
60. Statute of Limitations – The time limit for creditors to sue for unpaid debt.
61. Repossession – Taking back property (like a car) due to nonpayment.
62. Identity Theft – Fraudulently using someone else’s personal information.
63. Inquiries – Records of when someone checks your credit.
64. Judgment – A court order to pay a debt.
65. Collections Account – A debt transferred to a third party for payment collection.
66. Credit Builder Loan – A loan designed to help people build or rebuild credit.
67. Debt Validation – Requesting proof that a debt is valid and belongs to you.
68. Credit Mix – The types of credit accounts you have, like credit cards and loans.
69. Hardship Program – A payment plan for borrowers facing financial difficulty.
70. Foreclosure – Legal process where a lender takes a property due to loan default.
71. Inquiry Removal – The process of removing hard inquiries from your report.
72. Goodwill Letter – A request to a creditor to remove a late payment as a gesture of goodwill.
73. Credit Freeze Lift – Temporarily removing a credit freeze.
74. Credit Karma – A free credit monitoring service.
75. Lexington Law – A company known for credit repair services.
76. MyFICO – A service providing official FICO scores and reports.
77. Negative Equity – Owing more on a loan than the asset is worth.
78. Over-the-Limit Fee – A charge for exceeding your credit limit.
79. Primary Account Holder – The individual responsible for a credit account.
80. Promissory Note – A written agreement to repay a loan.
81. Revolving Debt – Debt from credit cards and similar accounts.
82. Skip Tracing – Locating a person who owes money.
83. Statement Balance – The total amount owed at the end of a billing cycle.
84. Tax Lien – A government claim on assets due to unpaid taxes.
85. Time-Barred Debt – A debt too old to be collected through court.
86. Unpaid Collection – A collection account that hasn’t been paid off.
87. Verification Letter – A letter asking for proof of a debt or account.
88. Consumer Statement – A note added by you to explain an item on your credit report.
89. Credit Inquiry Letter – A request to remove or explain a credit inquiry.
90. Credit Repair Organization – A business that helps consumers fix their credit.
91. Debt Snowball – A strategy for paying off debts from smallest to largest.
92. Debt Avalanche – A strategy for paying off debts from highest to lowest interest rate.
93. Discharge (Bankruptcy) – The release of a person from debt obligations in bankruptcy.
94. Fraudulent Account – An account opened in your name without consent.
95. Identity Verification – The process of confirming someone’s identity.
96. Metro 2 Format – The standard format used for reporting credit data to bureaus.
97. Obsolete Account – A negative item that should no longer appear on a credit report.
98. Original Loan Amount – The full amount borrowed at the beginning of a loan.
99. Re-aged Debt – See Re-aging (potentially illegal if used to extend credit reporting).
100. Zero Balance – An account with no outstanding balance.