Ultimate Credit Dictionary
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Bankruptcy: a legal process to settle debt when someone can't pay
Billing Cycle: the span of time, usually a month, after which you must make a minimum payment to remain in good standing
Chapter 7 Bankruptcy: bankruptcy when you have to sell assets to pay your debt
Chapter 13 Bankruptcy: bankruptcy when you keep assets and set up a repayment plan
Charge Card: like a credit card, but you have to pay the full balance every month
Credit Bureau: an entity that gathers information about you and creates your credit score based on that
Credit Freeze: a free way to hide your credit information so no one can use it without your permission
Credit Issuer: the bank or company that provided your card and/or credit
Credit Karma: an app that allows you to view a basic version of your credit report for free
Credit Limit: the maximum amount a lender will let you borrow before you have to start paying it back
Credit Lock: a paid way to hide your credit information so no one can use it without your permission
Credit Monitoring: making information from your report available to you (soft inquiry)
Credit Utilization: the amount you're currently borrowing vs. the total amount you can borrow
Derogatory Mark: documentation of previous credit that ended badly
Equifax: one of the credit bureaus
Experian: one of the credit bureaus
FICO: a credit rating company that uses information from bureaus to create your credit score
Fraud Alert: a free way to make people check your identity before opening credit for you
Fraudulent: done against agreement, illegally, and/or without permission
Hard Inquiry/Hard Pull: a small credit effect that happens when an issuer asks for a copy of your credit report
Installment Loan: a rigid loan that tells you all the numbers up front
Mortgage: allowing a lender to take your house if you don't pay back what you agreed on
Revolving Credit: a flexible loan that sets limits but otherwise gives you control
Soft Inquiry/Soft Pull: when you view your own credit report (has no credit effect)
Statement/reporting/closing date: the day the issuers give your information to the bureaus
TransUnion: one of the credit bureaus
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