A debt that cannot be collected, which is written off as a loss against a lender's taxes. Debt must be charged off in three cases: if it is a certain number of days past due (120 days for a loan and 180 days for credit card debt), if the debt holder dies, or if the debt holder goes bankrupt. A charged-off debt is not forgiven, though, and it stays on your credit report for 7 years. Lenders also generally sell charged-off debt to collection agencies who will attempt to recoup the debt through various means including lawsuit until its statute of limitations runs out, a time period that varies by state.

A credit bureau or credit reporting agency collects your credit history, and allows loan issuers or other companies and organizations to review your credit when applying for a credit card, loan, or even a job. Credit bureaus can only release your credit information with your permission.

A credit bureau or credit reporting agency collects your credit history, and allows loan issuers or other companies and organizations to review your credit when applying for a credit card, loan, or even a job. Credit bureaus can only release your credit information with your permission.

The up-to-date accumulation of how you have used your credit. Your credit score is based on your credit history. If you use your credit responsibly, your credit history will be more positive than if you default on your loans or make your payments after the deadline. Also referred to as "credit report", "credit record" or "credit file".

The up-to-date accumulation of how you have used your credit. Your credit score is based on your credit history. If you use your credit responsibly, your credit history will be more positive than if you default on your loans or make your payments after the deadline. Also referred to as "credit report", "credit history" or "credit file".

The up-to-date accumulation of how you have used your credit. Your credit score is based on your credit file. If you use your credit responsibly, your credit history will be more positive than if you default on your loans or make your payments after the deadline. Also referred to as "credit report", "credit history" or "credit record".

A summary of your recent credit history plus additional personal facts, including your age, address, marital status, employment history and other details that will help potential creditors or employers gauge your creditworthiness. A credit report includes a record of all credit cards you currently hold, have held, or applied for. It also includes the credit limit and your payment history. Also called "credit record" or "credit file".

A numeric score of your overall credit performance as it pertains to the repayment history of your credit cards, loans, and bills. Also referred to as "credit score" or "FICO score".

A numeric score that helps creditors determine your creditworthiness. Also known as a Credit Rating or a FICO Score.

The method by which your credit score is determined, based on how likely you are to repay a debt.

A qualitative term that reflects where one's credit stands on a rating from "excellent" to "bad". On the other hand, Credit Rating / Credit Score is a quantitative assessment of the strength of your credit: the higher your credit score, the higher your credit standing.

One of the three credit bureaus / credit reporting agencies in the United States.

One of the three credit bureaus / credit reporting agencies in the United States. Formerly known as TRW.

When a creditor asks to see your credit report from one of the three major credit bureaus. More specifically, there are two different types of credit inquiries: hard and soft. Hard credit inquiries are when creditors or lenders view your credit report(s) for the purpose of making a lending decision. This type of credit inquiry is listed on your credit files. Soft credit inquiries are when creditors, lenders, landlords or employers request your credit report(s) for pre-qualification or risk assessment purposes.

Former name of the credit bureau now known as Experian.

One of the three major credit bureaus / credit reporting agencies in the United States.

Your credit worthiness, as described in your credit report as the type of credit account and your payment history.

The ratio of credit spent to total available credit. If you have a little debt and a lot of available credit, your balance-to-ratio limit is low, which is good for your credit score. For example, if you have a credit card with a $1,000 credit limit and your balance on that credit card at the end of your billing period is $500 then your balance-to-limit ratio will be 50%.

The ratio of credit spent to total available credit.

A numeric score (between 300-850) that indicates whether your credit history is good or bad.

You are allowed to check your credit once each year from each of the three main credit reporting agencies.

The most widely known type of credit score, FICO is a credit score tha is developed by the Fair Isaac Corporation (FICO). It takes values between 300 and 850. The higher the better.

The ratio of the sum of all your credit card balances relative to the sum of the credit lines of your credit cards. For example, if you had 2 credit cards and each one had a credit line of $100 and a balance of $50 then your Debt-to-Available-Credit Ratio would be ($50+$50) / ($100+$100) = 50%

A formula where the amount of charge offs is divided by the average outstanding card balances owed to the credit card company. When a company has decided that collecting a debt is a lost cause, it charges it off its ledger. A rising rate of charge offs points to economic duress.

A store of an individual's debt-repayment records. Credit scores and standings are based upon consumer credit files. People with better credit standings are offered better rates for credit and loans.

A brief report of a consumer's credit history, as made available through credit bureaus to lenders and creditors. The risk score allows creditors to evaluate the risk involved with loaning credit or money to a debtor, based upon that person's history of debt repayment.

Consumers can request a credit freeze from the credit bureaus, to prevent new accounts from being opened under the consumer's name. There is generally a fee associated with this service, unless identity theft is suspected or has been detected. Credit bureaus might also charge a fee for revoking (or "thawing") the credit freeze.

In general, an inquiry is when a third-party (e.g. creditor, lender, employer, landlord, etc.) asks to see your credit report from one of the three major credit bureaus (i.e. Experian, Equifax, TransUnion). More specifically, there are two types of inquiries: hard inquiries and soft inquiries. A hard inquiry is when the third party requests your credit report with the intent of making a lending decision, as would be the case when a bank is evaluating a credit card or loan application. Hard inquires are listed on your credit reports, and multiple inquiries can be perceived as desperation for credit, which will signal risk to creditors and may result in temporary credit score damage. However, your FICO Score, the most commonly used credit score, considers multiple inquiries from mortgage, auto loan or student loan companies within a short period of time as being a single inquiry. FICO differentiates these types of inquiries from those for, say, credit cards because they understand that multiple applications are merely part of the process of shopping around for the best loan rates. Soft inquiries are inquiries related to pre-qualification (e.g. direct mail credit card offers) as well as those used by employers and landlords to assess the risk of future applicants.

A service that monitors credit card accounts for activity that is out of the ordinary. The card holder is then alerted when such activity happens.

"No credit" and "limited credit" are often used interchangeably to describe people who either do not have any information on file with the major credit bureaus (Equifax, TransUnion and Experian) or whose credit reports reflect less than three years of experience as the primary account holder on a credit card or loan.

Young people and recent immigrants just beginning financial autonomy in the U.S., are not the only ones typically classified as having "no credit." Unfortunately, recent divorcees and widowers can technically be "new to credit" as well, even if they once had robust credit histories, because creditors require up-to date-information about one's credit performance.

As opposed to "bad credit," which denotes poor credit management, "no credit" simply means that you have yet to establish a pattern of credit usage (either positive or negative).