Understand, Build and Manage
Your Credit whether you’re buying a home, a car or applying for a credit card – Terms are used and you may not know of its meaning so we put together a list of the most common terms out there.
A B C D E F G H I j k L M N O P Q R S T U V W X Y Z
Total number of accounts that have been paid satisfactorily or paid after having been previously delinquent.
An account reflecting late payments or payments received after an agreed upon time for settlement.
Reflects the history of payments on an account, including any delinquencies or late payments occurring during the previous seven years (current account, delinquent 30 days, current was 60 days past due, redeemed repossession, charge off - not paying, etc.).
As defined by the Federal Fair Credit Reporting Act, and various state regulators, the circumstances under which a third party may obtain a consumer credit report. Permissible purposes include credit transactions, employment purposes, insurance underwriting, government financial responsibility laws, court orders, subpoenas, written instructions of the consumer or legitimate business needs.
The personal information section on your credit report includes your name (and any name variations), driver's license number, Social Security number, date and year of birth, spouse's name, employers, personal phone numbers and information about your residence. This information is reported to Experian by your, creditors or other sources. As part of a fraud prevention program, a notice with additional information may appear in this section.
You can add a personal statement that will appear at the beginning of your credit report. Your personal statement may include a general explanation about the information on your report.
If a consumer files for bankruptcy, but a judge has not yet ruled that it can proceed, the process is known as a bankruptcy petition.
PITI percent of annual income
The percent of your annual income the financial institution will allow you to use for your "Principal, Interest, Tax and Insurance" payment for your home. The customary amount of your income to be used for PITI is 28%, but will vary among lenders.
An educational credit score developed by Experian, calculated based on information contained in an individual credit file PLUS Score can range from 330 to 830, with a higher score indicating lower credit risk. The formula used to calculate your PLUS Score is based on the most current consumer information available, using a similar formula to those used by lenders.
Your credit score can change daily as your credit file is updated, so it is calculated at the time a lender requests your credit report and reflects your current credit standing. The information in your credit files at the different credit bureaus may vary, which means that your scores may be different for each bureau, including your PLUS Score.
The assignment of values for characteristics identified as indicators of a person's creditworthiness. Point scoring is based on the same evaluation process used by a credit grantor in the analysis of an applicant's creditworthiness.
Potentially negative items
Any information on your credit report that may have a negative impact on your ability to obtain credit. This may include your account information (type and terms), payment history, bankruptcy, lein or judgment information.
Pre-approved credit card
Pre-approved offers are mailed to your home because you meet the risk criteria of the company making the offer. A pre-approved offer is not guaranteed. You can still be turned down when you apply.
A process where lenders review consumer's credit information for a guaranteed credit offer. See also pre-approved.
The amount of debt, not including interest. The face value of a note, mortgage, etc.
Total of principal paid per month on your mortgage.
A statement that discloses a company's practices related to their collection and used personal information, which the information may be shared with and for what purposes, what choices are available to the consumer regarding the collection and use of their data, what security procedure is used, and how a consumer can correct any inaccuracies.
Property tax rate
The rate at which your property will be taxed per year. Example: 1% for a $100,000 home equals $1000 per year in property taxes.
Public record data
When included as part of the credit report, this information is limited to tax liens, lawsuits and judgments that relate to the consumer's debt obligations.
The amount, before taxes, fees and closing costs that you pay for an item like a home or auto.