Financial Glossary

A three-digit number (300-850) calculated by the Fair Isaac Corporation that represents your creditworthiness based on information in your credit report.

A credit scoring model created jointly by the three major credit bureaus as an alternative to FICO scores, also ranging from 300 to 850.

The ratio of your current credit card balances to your total credit limits. Lower utilization generally has a positive impact on your credit score.

A detailed record of your credit history maintained by credit bureaus, including accounts, payment history, inquiries, and public records.

A company that collects and maintains credit information. The three major bureaus are Equifax, Experian, and TransUnion.

A credit check that occurs when a lender reviews your credit report as part of a lending decision. May temporarily impact your credit score.

A credit check that does not affect your credit score, such as when you check your own credit or pre-approved offers are reviewed.

The record of your on-time and late payments. This is typically the most significant factor in your credit score calculation.

An account that has been turned over to a collection agency after significant non-payment. This can have a substantial negative impact.

When a creditor writes off a debt as unlikely to be collected. The debt is still owed, and the charge-off appears on your credit report.

Negative information on your credit report such as late payments, collections, charge-offs, bankruptcies, or public records.

The process of challenging inaccurate or unverifiable information on your credit report with a credit bureau or creditor.

The Credit Repair Organizations Act, a federal law that protects consumers from deceptive practices by credit repair companies.

The Fair Credit Reporting Act, which regulates how credit information is collected, used, and shared, and gives consumers dispute rights.

The Federal Trade Commission, the federal agency that enforces consumer protection laws including those related to credit repair.

The official website where consumers can request a free copy of their credit report from each major bureau once per year.