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
Rate earned on savings
This is the rate you earn on short-term savings. For most people this is currently 4% to 5% annually.
Rate of depreciation
The rate of depreciation gauges how fast your new purchase - automobile, computer, etc. - will lose its market value. High depreciation rate is about 20% per year, medium is 15% per year and low is 10% per year.
The maximum amount that the interest rate on an adjustable rate mortgage can rise in a single year.
Real estate secured debt
Any debt that has been used to buy a home or has been secured by your home. For example, a home equity loan can be a real estate secured debt.
This means that a lien has been satisfied and is no longer in effect.
A 10-digit number that uniquely identifies each personal Experian credit report. This number should always be referenced when you contact us. Each new report you receive will have a different number.
After a borrower is significantly behind on payments, a creditor takes possession of property pledged as collateral on a loan contract to pay off the remaining loan amount.
Request an investigation
If you believe that information on your report is inaccurate, you can request an investigation of the information. The credit bureaus will ask the sources of the information to check their records at no cost to you. Incorrect information will be corrected; information that cannot be verified will be deleted. Accurate information cannot be removed from your credit report. An investigation may take up to 30 days. When it is complete, the credit bureau will send you the results.
Request for your credit history
This is a request for your personal credit report. Consumers' credit reports contain information credit grantors can't see, such as a detailed history of when your credit information is viewed by credit grantors or employers.
For leases, this is the remaining value of the property you're leasing at the end of the lease term. The higher this amount, the lower your lease payment will be.
A plastic payment card issued by a specific retailer or group of retailers for limited use at their own outlets.
An account from which credit is automatically available up to a predetermined maximum limit as long as a customer makes regular payments.
Debt owned on an account that the borrower can repeatedly use and pay back without having to reapply every time credit is used. Credit cards are the most common type of revolving debt.
In determining credit scores, lenders place you in a risk category that compares you to a large number of consumers with similar credit histories. This allows lenders to compare "apple to apples," ensuring that your credit behavior is judged in a context that is relevant and fair.
Risk score models
A tool used by credit grantors to predict future payment behavior of consumers.