Credit Report Legacy Glossary
As you delve into your credit report legacy, you may come across a few unfamiliar terms and ideas. To lessen the confusion, consult our glossary of credit report terms.
- Court records - this section of your credit report legacy will contain any public matters that concern your finances. Specifically, court records may include liens, divorce, bankruptcy, and judgments. If your credit report contains information in this section, it will always have a negative effect on your creditworthiness.
- Credit bureau - a credit bureau is an independent, for-profit company that maintains the financial records of consumers for distribution to lenders for a fee. In the U.S., the three major credit bureaus are TransUnion, Equifax, and Experian.
- Credit repair - a service that may help clean up your credit report legacy by petitioning the credit bureaus for the removal of erroneous or questionable negative items.
- Credit report - a document that reflects a consumer's payment history on all of his/her accounts. The purpose of credit reports is to help lenders decide if they should extend credit to a particular individual.
- Credit score - based on an algorithmic formula, your credit score takes the information in your credit report legacy and converts it to a number. Lenders then determine your creditworthiness based on this metric.
- Derogatory items - items on your credit report that harm your credit standing, such as late payments, collections actions, and charge-offs.
- Fair Credit Reporting Act - entitles consumers to fair and accurate credit reports and compels the credit bureaus to investigate any disputes initiated by consumers over the accuracy of their credit reports.
- Inquiries - shows that a certain creditor looked at your credit record when you applied for a loan or credit. Your existing lenders may also periodically make inquiries to monitor your credit standing. Inquiries can stay on your credit report for up to two years.
- Installment account - a loan with fixed payments over a limited amount of time, such as a car loan. These types of loans have a special section designated for them in your credit report.
- Mortgage account - a loan against a piece of property.
- Revolving account - an open account with a revolving credit line, such as a credit card.
Our frequently asked questions might help you out if you are still confused and have unanswered questions.
