Credit Insider

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Hello everyone, I am starting this blog with the sole intention to first educate all consumers, but more importantly to help them understand the enigmatic credit scoring and reporting system. Allow me to introduce myself. I have been involved in consumer credit since 1985 as a credit restoration specialist.
In my 24 years experience I have seen this industry change in all aspects of the financial world. We used to have back in the 80's only one credit bureau, TRW. We now have three, Experian, Equifax and Transunion. The FICO score has taken an important role in the lending decision process for all banks
However, before we move on, I think is very important that you all understand the credit terminology used by all individuals associated within this industry, like bankers, real estate agents, mortgage brokers among others. we must be very clear what these people are talking about when we go and apply for a loan, because what we don't know might hurt us.

A
Account
An account represents a contractual relationship between a company (the account owner) and consumer, where the consumer incurs a debt for the purchase of a product or service and agrees to repay that debt over time.
Account Designator
Describes the contractual ownership of an account. It includes:
Authorized user of shared account, for which another party has contractual responsibility
Joint contractual liability
Individual account for sole use of applicant
Account for which subject is liable but co-maker becomes liable if maker defaults
Participant in shared account that cannot be designated as joint account or authorized account
Account for which subject is co-signer and becomes liable if maker defaults
Association with account terminated
Undesignated (not used on accounts opened after June of 1977)
Business/Commercial
Deceased
Delete borrower
Account Number
A reference number assigned to accounts, by the creditor or collection agency to uniquely identify each account.
Account Review
Inquiries made into a consumer's credit history by creditors, with whom the consumer has a current relationship. These inquiries are not included in the business version of a consumer's credit report.
Account Type
Describes the type of credit account, such as:
Revolving account – credit card, charge account, combined credit plan, etc.
Installment account – automobile, student loan, note loan, etc.
Mortgage account – conventional or V.A. real estate mortgage, home equity loan, etc.
(Employer) Address
The address of the company that you work or worked for.
Adverse Action
An unfavorable action, such as the denial of credit, insurance or employment, taken by a creditor or other entity, affecting a consumer. Under the Fair Credit Reporting Act, creditors must disclose the reasons for any adverse action.
Adverse Information
Information on a consumer’s credit report that a creditor or other entity considers unfavorable, such as a past due account.
Also-Known-As (name)
Describes an individual’s alias or other name he or she used at one period in time; AKA names are commonly contained in credit files of women who have married, to capture either their married or maiden name.
Amount Owed
Total monetary obligation displayed in a public record in your credit report if the record type is not bankruptcy.
Asset
An article of property owned by a person that can be used to settle debts. These are of special importance in bankruptcy cases.

B
Balance
The difference between debt and credit on a credit account.
Bank Card
A card issued through a bank that uses common credit card systems, such as MasterCard® or Visa® but is linked to a bank account rather than a line of credit.
Bankruptcy
A legal proceeding to give a person or business relief from certain debts. See also Chapter 7 Bankruptcy, Chapter 11 Bankruptcy, Chapter 12 Bankruptcy, and Chapter 13 Bankruptcy.
Birth date
The date when you were born. Note: We do not disclose the day of your date of birth on your credit report.
Business Version (of a credit report)
An abbreviated version of a consumer credit report that creditors see which does not contain promotional inquiries or account review inquiries, or information that creditors have requested be suppressed.

C
Chapter 7 Bankruptcy
The chapter of the Bankruptcy Code that provides for court-administered liquidation of the assets of a financially troubled individual or business; also called Straight Bankruptcy.
Chapter 11 Bankruptcy
The chapter of the Bankruptcy Code that is usually used for the reorganization of a financially troubled business; commonly used as an alternative to Chapter 7 liquidation.
Chapter 12 Bankruptcy
The chapter of the Bankruptcy Code that provides bankruptcy protection to owners of farms.
Chapter 13 Bankruptcy
The chapter of the Bankruptcy Code in which debtors repay debts according to a plan accepted by the debtor, the creditors, and the Court; also called Wage Earner Plan.
Charge Card
A credit card that requires full payment of the bill each month; no interest is charged. The traditional American Express Card and Diner’s Club Card are examples.
Collateral
Security given as a pledge for the repayment of a loan such as a car financed in an auto loan.
Current Address
Your address where you reside now.
Court Location
The city and state of the court where the public record was obtained.
Court Type
The type of court where the public record was obtained, such as federal district, circuit court, U.S. bankruptcy court, parish court, justice of the peace or small claims.
Consumer Version (of a credit report)
The consumer version of a credit report lists all inquiries, including promotional and account review inquiries, and information that creditors have requested be suppressed. Only the consumer can request this version of their credit report. Creditors cannot see this version; they see only the business version of credit reports.
Credit
A consumer’s right to incur debt or purchase property or services and defer payment.
Credit Bureau
Any entity that regularly assembles or evaluates consumer credit information for the purpose of furnishing credit reports to third parties.
Credit Card
A card or other single credit device that may be used to obtain money, property or services on credit; for example, Visa, MasterCard, and Discover.
Credit Check
An inquiry to confirm a consumer's credit payment history.
Credit Fraud
Criminal use of deception or theft to obtain credit; one type of credit fraud is identity theft.
Credit History
Term that references a subset of data in a credit file that includes credit accounts, manner of payment (MOP), high credit, current balance, credit limit, and 24 months of MOP history.
Credit Limit
The maximum amount of credit that can be extended on a credit account.
Credit Report
The communication of information from a consumer’s credit file by a consumer reporting agency to a third party.
Credit Risk
The likelihood of a consumer meeting the terms of a credit agreement.
Credit Score
The result of a mathematical calculation that predicts a consumer's creditworthiness. The score is an assessment of how likely a consumer is to pay his or her debts.
Creditor
Person or business to whom a debt is owed.
Creditworthiness
A characteristic indicating whether one is a good credit risk as a borrower.

D
Date (when an inquiry was made)
The date when an inquiry was posted to your credit report. Note: Only month and year of an inquiry date is posted for the promotional and account review inquiries.
Date Closed
The date when an account is no longer available for use by the consumer.
Date Last Updated
The date when specific data was processed in Credit Bureaus’ database.
Date Opened
The date when a credit account was established and available for use by the consumer.
Default
Failure of a consumer to make loan or credit repayments as agreed in a loan or credit agreement. A loan or credit default may be identified by a high MOP rating. See manner of payment.
Dispute
Method by which a consumer contacts the credit bureau to report an inaccuracy of information contained in his or her credit file. Credit Bureau is obligated to recheck the disputed information with the creditor or organization that reported it, record the current status, and correct any error.
Docket Number
The identification numbers used by courts to track cases. Contained in credit reports to identify specific court records.

E
Employer (name)
The name of the company that you work or worked for.
(Employment) End Date
The date (month and year) when you stopped working for a company.
(Date when a public record) Entered
The date when a public record was reported in your credit report.

F
Fair Credit Reporting Act (FCRA)
The law established to assure fair and accurate reporting and to protect consumers’ privacy. Among other things, it defines the permissible purposes a business or individual must have when requesting a credit report, provides consumers with the right to obtain copies of their consumer disclosures and to dispute inaccurate information on their credit files. The FCRA defines information that may not be included in credit reports issued by consumer reporting agencies, and requires that reasonable procedures be used by consumer reporting agencies and data furnishers to ensure accuracy of credit files.
Fraud
Intentional deception to cause a person to part with something of value or to surrender a legal right.

I
Identifying Information
The information about you that a company provided to credit bureau when the company requested your credit report.
Identity
The distinguishing characteristics of a consumer, including unique information such as a Social Security number.
Identity Confirmation
The successful verification of a consumer's identity.
Inquiry
Indicates the receipt of a credit report in response to a request by a specific person or entity.
Inquiry Type
The type of inquiry such as individual, participating, authorized or spouse user.
Installment Loan account
A credit account in which the total debt is divided into amounts to be paid successively at specified intervals according to pre-agreed terms.
Installment Loan Account Number
A reference number that the creditor assigns to a specific installment loan account (for example: auto, student, furniture, jewelry).

L
Liabilities
Obligation, responsibilities, or debts. In your credit report, liabilities represent the monetary obligation in a bankruptcy public record.
Lien
A claim against some interest or property to ensure payment of some debt.
Line of Credit
Credit limit established by a creditor.

M
Manner of Payment (MOP)
A series of codes or statements used to show the payment status of a consumer for an account. For example, paid as agreed, 30 days past due, etc.
Maximum Delinquency Date
The date when the maximum delinquency (payment 90+ days late) occurred.
Mortgage
A document in which the owner of real property pledges his/her/its title to the property to a creditor as security for a loan.
Mortgage Account Number
An account number created by the creditor to identify the mortgage, usually found on either the monthly statement or coupon book issued with the loan.
Most Owed
Either the highest amount ever owed in the account or the original balance owed.

N
Name
Word or phrase by which a person is known or identified.

O
Open Account
An account that is active, still in use, or is still being paid.

P
Paid as Agreed
A designation on the credit report that indicates the consumer is repaying the account according to the terms of the credit agreement.
Past Due
A payment or account that was not made on the due date and is now payable immediately or on demand.
Payment History
Snapshot of certain period of time (x months from date updated/paid/closed) that shows whether payments were never late, or how many times payments were 30 (60 or 90+) days late.
Payment Status
Status of account at a certain date, can include paid or paying as agreed, 30 (60, 90 or 120) days past due, charged off as bad debt, or payment after charge off/collection.
Payment Terms
For the credit industry, the number of payments, payment frequency, and payment amount on an account.
Permissible Purpose
The circumstances under which a credit report may be furnished by a consumer reporting agency in accordance with the Fair Credit Reporting Act.
Plaintiff
The party that institutes a suit in a court.
Plaintiff Attorney
A person legally appointed by another to act as his or her agent in the transaction of business, specifically one qualified and licensed to act for plaintiffs and defendants in legal proceedings.
Position (with the employer)
Your job title in the company where you work or worked.
Previous Address
The address where you lived prior to where you currently reside.
Promotional Inquiry
A record of the delivery of limited credit report information by a consumer reporting agency for the purpose of making a firm offer of credit or insurance.
Public Records
Information that is available to the general public typically from government agencies or courts such as tax liens, court judgments, and bankruptcies.
Public Record Type
Describes the type of the public record, such as tax lien, foreclosure, child support, Chapter 11 bankruptcy filing or civil judgment.

R
Remarks
Comments included in a credit report that indicate whether an account or public record is closed, transferred to another lender, placed for collection, disputed by consumer, or paid collection.
(Date when an employment record was) Reported
The date when an employment record was reported in your credit report.
Retail Card
A credit card that is issued by a retail store to be used for purchases from that store.
Revolving Charge Account
A credit account in which credit is available up to a predetermined limit so long as the terms of the account are being met.

S
Score
See credit score.
Secure Sockets Layer (SSL)
An Internet security standard that is used to establish a secure connection on the World Wide Web.
Social Security Number
A 9-digit number that is issued to an individual by the United States Social Security Administration.
(Employment) Start Date
The date (month and year) when you started to work for a company.
Subscriber Name
The name of the entity that has been authorized by TransUnion to access a consumer’s credit report.
Suppressed
The credit-related data of an item (e.g., a public record or an account) that is being concealed from being viewed by anyone else except you.

T
Tradeline
Term used to reference all information retained in a credit file regarding a specific loan account such as a bank loan, credit card, or mortgage.

Y
(Date) You Have Been on our File Since
The date your credit report was created in TransUnion’s database.