Credit Glossary

What Is an Authorized User? An authorized user is a person who has been added to another individual’s credit card […]

What is an Installment Loan? An installment loan is a type of credit agreement in which a borrower receives a […]

What is Available Credit? Available credit refers to the unused portion of your credit limit on a revolving credit account, […]

What is a Secured Credit Card? A secured credit card is a type of credit card that typically requires the […]

What is a Grace Period? A grace period is the window of time after your credit card billing cycle closes […]

What Is a Balance Transfer? A balance transfer is the process of moving existing debt from one credit card to […]

What is Minimum Payment? A minimum payment is typically the smallest amount a credit card issuer will accept from you […]

What is Debt-to-Income Ratio? Debt-to-income ratio, commonly abbreviated as DTI, is a financial measurement that compares your monthly debt payments […]

What Is Credit Monitoring? Credit monitoring is a service that typically tracks changes to your credit report and alerts you […]

What is a Credit Lock? A credit lock is a bureau-level service that typically allows consumers to restrict access to […]

What is a Credit Freeze? A credit freeze, also known as a security freeze, is a tool that typically restricts […]

What is a Charge-Off? A charge-off is an accounting action a creditor typically takes when a borrower has failed to […]

What is Credit Age? Credit age, sometimes called “length of credit history,” refers to how long your credit accounts have […]

What is Payment History? Payment history is a record of how consistently you have paid your bills and loan obligations […]

What is Credit Mix? Credit mix refers to the variety of credit account types you hold at any given time. […]

What is Revolving Credit? Revolving credit is a type of credit account that allows you to borrow money, repay it, […]

What is a Credit Limit? A credit limit is the maximum amount of money a lender will allow you to […]

What is an Unsecured Credit Card? An unsecured credit card is a type of revolving credit account that does not […]

What is an Annual Fee? An annual fee is a yearly charge that a credit card issuer may apply to […]

What is Delinquency? A delinquency occurs when a borrower fails to make a scheduled payment on a credit account by […]

What Is Collections? Collections refers to the process by which a lender, creditor, or third-party debt collector typically pursues repayment […]

What Is a Soft Inquiry? A soft inquiry, sometimes called a soft pull, is a type of credit check that […]

What Is a Hard Inquiry? A hard inquiry, sometimes called a “hard pull,” is a review of your credit report […]

What is Credit Utilization? Credit utilization refers to the ratio of your current credit card balances compared to your total […]

What is VantageScore? VantageScore is an alternative credit scoring model developed jointly by the three major credit bureaus: Equifax, Experian, […]

What is a FICO Score? A FICO Score is a three-digit number, typically ranging from 300 to 850, that represents […]

What is a Credit Bureau? A credit bureau is an agency that typically collects, organizes, and maintains financial data about […]

What is a Credit Report? A credit report is a detailed record of an individual’s credit history, compiled by consumer […]

What is a Credit Score? A credit score is a three-digit number that typically ranges from 300 to 850 and […]

What is APR? The Annual Percentage Rate, or APR, is a standardized measure of the yearly cost of borrowing money. […]