deep dive into credit reports: Master Advanced Credit report Terms
Decrypted: Credit Repair Glossary
Ready to unlock the secrets behind your credit report and boost your financial potential? Dive into advanced concepts like Account Status Codes, Payment History Notation, ECOA Codes, and more.
Credit Report Glossary
Say goodbye to confusing jargon—this is the real information you’ve been searching for. Master these terms and take control of your financial journey.
Take massive action now and watch your credit score soar!
Account Status Codes
Section 1
Credit Account Status Codes and Types
O: Open
The account is currently active and has an outstanding balance.
C: Closed
The account has been closed, either by you or the lender, and no further transactions can occur.
R: Revolving
This type of account allows you to borrow up to a certain limit and pay it back over time, such as credit cards.
I: Installment
A loan with fixed payments over a set period, such as a car loan or mortgage.
P: Paid
The account has been fully paid off.
F: Foreclosure
The lender has taken possession of the property due to failure to repay the mortgage.
CO: Charge-off
The lender has written off the account as a loss due to non-payment, though you are still legally obligated to pay.
Payment History Notation
Section 2
Credit Payment Status Codes
1: Paid as agreed
Payments are made on time and in accordance with the terms of the credit agreement.
2: 30 days late
Payment is overdue by 30 days.
3: 60 days late
Payment is overdue by 60 days.
4: 90 days late
Payment is overdue by 90 days.
5: 120+ days late
Payment is overdue by 120 days or more.
6: Voluntary repossession
The borrower has voluntarily surrendered the property to the lender.
7: Making payments under a wage earner plan
The account is being managed through a court-approved repayment plan or similar arrangement.
8: Repossession
The lender has taken back the property due to non-payment.
9: Charged off to bad debt
The account has been written off as uncollectible by the lender, though you still owe the debt.
ECOA (Equal Credit Opportunity Act) Codes
Section 3
Account Responsibility Designations
Individual
The account is solely in the name of one person.
Joint
The account is shared between two or more people, each equally responsible for the debt.
Authorized User
An individual who is allowed to use the account but is not legally responsible for the debt.
Maker (primary borrower on a loan)
The primary person responsible for repaying the loan.
Terminated
The account has been closed or ended, often by the lender or account holder.
Undesignated
The account status or type has not been specifically assigned or labeled.
Deceased
The account holder is deceased, which can impact the management and settlement of the account.
Credit Terms
Section 4
Credit Terms and Definitions
Adverse Action
A notice sent by a lender explaining why your credit application was denied or why less favorable terms were offered.
Charge-off
When a creditor writes off a debt as uncollectible, typically after 180 days of non-payment.
Credit Limit
The maximum amount you can borrow on a revolving credit account.
Credit Utilization Ratio
The amount of revolving credit you’re using compared to your credit limits, expressed as a percentage.
Hard Inquiry
A credit check that occurs when you apply for credit, which can slightly lower your credit score.
Soft Inquiry
A credit check that doesn’t affect your credit score, such as when you check your own credit or receive pre-approved offers.
Trade Line
An account listed on your credit report, showing your payment history with a particular creditor.
FICO Score
A credit score created by the Fair Isaac Corporation, ranging from 300 to 850.
VantageScore
A credit scoring model created by the three major credit bureaus as an alternative to FICO.
Credit Mix
The variety of credit types you have, including revolving accounts and installment loans.
Debt-to-Income Ratio (DTI)
The percentage of your monthly gross income that goes toward paying debts.
Dispute
A formal way to challenge inaccurate or incomplete information on your credit report.
Fair Credit Reporting Act (FCRA)
A federal law that regulates the collection of credit information and access to credit reports.
Forbearance
A temporary postponement or reduction of payments, typically granted by the lender due to financial hardship.
Garnishment
A legal process where a portion of a person’s earnings is withheld for the payment of a debt.
Judgment
A court decision that results in a public record on your credit report, usually relating to unpaid debts.
Lien
A legal claim on property as security for a debt or obligation.
Revolving Credit
A type of credit that can be used repeatedly up to a certain limit, such as credit cards.
Secured Credit
Credit backed by collateral, such as a car loan or mortgage.
Unsecured Credit
Credit not backed by collateral, such as most credit cards or personal loans.
Credit Bureau Terms
Section 5
Credit Bureau and Report Terms
Equifax
One of the three major credit reporting agencies in the United States.
Experian
One of the three major credit reporting agencies in the United States.
TransUnion
One of the three major credit reporting agencies in the United States.
Credit File
The information about your credit history maintained by a credit reporting agency.
Dispute Center
An online portal provided by credit bureaus where consumers can file disputes about inaccurate information.
Annual Credit Report
A free report that consumers are entitled to once per year from each of the three major credit bureaus.
Credit Freeze
A tool that lets you restrict access to your credit report, making it harder for identity thieves to open new accounts in your name.
Fraud Alert
A notice on your credit report that alerts creditors you may be a victim of fraud or identity theft.
Credit Repair Terms
Section 6
General Credit Terms
Adverse Action
A notice sent by a lender explaining why your credit application was denied or why less favorable terms were offered.
Charge-off
When a creditor writes off a debt as uncollectible, typically after 180 days of non-payment.
Unsecured Credit
Credit not backed by collateral, such as most credit cards or personal loans.