Glossary of Credit Terms (A – B)

Glossary - Common Credit Reports & Credit Scores TermsHere are definitions of key terms and phrases common to the credit reports and scores. Refer back to this glossary when you come across any jargon that leaves you puzzled.

To fast forward to a particular section of this glossary of credit terms, just click on a letter below for terms beginning with:

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Acronyms & Abbreviations

A

3 in 1 Credit Report
A combined credit report, containing information from the 3 major credit bureaus side by side (See 3-in-1 Credit Report for more information) Common Synonyms: Three in One credit report

Account Condition/Account Status
Indicates the present state of your account, not including the payment history that led to the current state (e.g. Open, Closed, Paid, Settled, Foreclosed etc).

Accounts in Good Standing
Accounts and credit items listed on your credit report that have a positive status, and reflect favorably on your credit.

Active Duty Alert
A type of Fraud Alert. Available only to active duty military personnel, that may place it on their credit files to help minimize the risk of identity theft while being deployed. Active Duty Alerts last for 1 year and can be extended. See Credit Fraud Alert for more information.

Algorithm
A complex mathematical model that, in credit scoring, is used to process data in credit files to predict a person’s likelihood of repaying debt.

Application Scoring
The use of statistical models and algorithms to objectively evaluate and “score” credit applications. Credit reports and scores help businesses make lending decisions such as whether to accept or decline credit applications.

Authorized User
Person permitted by the credit card holder to use that person’s credit card. The account appears on both person’s credit report, and in some cases may be included in both person’s credit score (See Credit Piggybacking).

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Acronyms & Abbreviations

B

Balloon Payment
A loan with a balloon payment requires that a single, lump-sum payment be made at the end of the loan, while monthly payments include only interest.

Bankruptcy
Refers to judicial proceedings involving persons or businesses that cannot pay back their debts, and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may be released from or discharged from their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings. The person with the debts is called the debtor and the people or companies to whom the debtor owes money are called creditors

Beacon/Beacon Score
The brand name Equifax credit bureau is using for their version of Fico credit score (See Beacon Credit Score for more information)

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