Glossary of Credit Terms (K – N)

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

K

KD
See Key Derogatory.

Key Derogatory
A term used by the credit bureaus to mark accounts that impact your credit the most. While “Derogatory” refers to negative information, “Key” simply implies that the information was significant enough to make a major impact on your credit score.

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Acronyms & Abbreviations

L

Last Reported
The date the creditor last reported information about the account.

Late Fee
A penalty imposed by creditors on debtors when the payment received is less than the minimum payment or if the minimum payment is received after the due date.

Lien
Property used to secure a debt. When a lien is placed on a consumer’s property, it means that the property is being used as collateral during the repayment of owed money. A consumer cannot sell a property with a lien on it until they’ve paid off the creditor with whom they have the lien. Liens are discharged when they are paid off. See also Tax Lien.

Line of Credit
In open-end credit, the maximum amount a borrower can draw upon or the maximum that an account can show as outstanding.

Liability amount
Amount for which you are legally obligated to a creditor.

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Acronyms & Abbreviations

M

myFico.com
A website owned by Fair Isaac, the creator of FICO credit scores, that sell consumers FICO credit scores and credit monitoring services.

Minimum Payment
The minimum amount that must be paid to avoid defaulting on the credit card or loan. Creditors can impose late fees on consumers if the payment received is less than the minimum payment or if the minimum payment is received after the due date.

Mortgage Identification Number (MIN)
Indicates that a loan is registered with Mortgage Electronic Registration Systems Inc., which tracks the ownership of mortgage rights. This number will follow the homeowner throughout the mortgage.

Most Recent Date
The date of the recent account condition or payment status. This date is also the balance date.

Money Management International
A non-profit credit counseling service that offers assistance to people who are struggling to pay their credit card debts. They offer free education, help build Debt Management Programs (DMP) and assist in negotiating better terms with creditors. See also National Foundation for Credit Counseling (NFCC)

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Acronyms & Abbreviations

N

National Foundation for Credit Counseling (NFCC)
A non-profit credit counseling service that offers assistance to people who are struggling to pay their credit card debts. They offer free education, help build Debt Management Programs (DMP) and assist in negotiating better terms with creditors. See also Money Management International.

NextGen FICO
See FICO 08

NFCC
See National Foundation for Credit Counseling

Notice of Results
See Investigation Results Letter

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