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A review of a consumer's credit history by one his/her creditors.

The percentage of a debt that is to be repaid to the creditor in a Chapter 13 bankruptcy.

The reduction of a mortgage loan by regular payments.

The yearly fee charged by a lender to maintain an account.

Any holding that has a monetary value or use. Houses, real estate, cars, jewelry, and stocks & bonds are considered assets.

On a credit account, the credit limit minus the current balance. To many creditors, your total available credit on all your accounts is an important factor.

The outstanding amount owed to a creditor on a particular account.

A final payment at the end of a loan term that is considerably larger than the regular periodic payments. Often associated with a second mortgage.

An estimate of the amount of debt you can handle, largely based on your income in relation to the amount you already owe. See debt-to-income ratio.

A cash loan taken out on a credit card. Interest for cash advances is usually higher than it is for purchases, a transaction fee may apply, and the grace period may be waived.

Normally used for corporations, Chapter 11 can be used by consumers in certain rare cases involving extremely large debt. However, Chapter 13 is simpler and provides better protection for most consumers.

In the context of a credit application, "character" is one of the three Cs, the traditional set of criteria lenders use to evaluate an application. In most cases, character is determined by your credit report and/or score.

An instance in which a consumer is seriously delinquent in paying a bill and the creditor elects to transfer the account to an accounting category such as "charged to loss" or "bad debt." In such cases, the creditor may also turn the account over to a collection agency.

The point at which the buyer signs the mortgage documents, pays closing costs, and becomes the owner of the property. Also called a settlement.

Property you pledge as a guarantee for a secured loan. If you fail to repay the loan, the creditor can take the property. Sometimes used in place of capital as one of the three Cs.

A loan obtained in order to combine multiple debts into one, typically at a lower interest rate.

Debt incurred for items that aren't considered tangible investments such as credit card debt, car loans, and personal loans made by family members.

See credit reporting company.

Someone who agrees to share responsibility with the primary applicant for a loan or credit card. A consumer with poor credit may need a co-signer to get a loan or to qualify for favorable terms. Because co-signers are liable for debts incurred, co-signed accounts appear on the cosigner's credit report.

The amount owed on a credit card. Not to be confused with a minimum payment.

A card used to make purchases or take out cash loans that requires the user to pay some or all of the outstanding amount each month. Credit cards are differentiated mainly by their terms.

The collection of an individual's credit history, identifying information, and other records maintained by a credit reporting company. "Credit file" is sometimes used interchangeably with credit report, but technically a credit file is the source from which a credit report is generated.

A record of how a consumer has paid credit accounts in the past. It is used as a guide to determine whether or not the consumer is likely to pay future accounts on time.

Companies that claim they can "clean up" or "erase" a consumer's bad credit.

Commonly known as credit bureaus, credit reporting agencies are companies that receive, maintain, and provide information about consumers' credit history. Three national agencies -- Equifax, Experian, and TransUnion -- dominate credit reporting. There are many smaller agencies, but almost all of them get information from one or more of the three major agencies.

A numerical estimation of the likelihood that you'll meet debt obligations. A creditor gets your information from a credit reporting company and applies a credit scoring model to calculate your credit score. For more information, see FICO® Scores.

An assessment of a consumer's past credit behavior that allows a potential lender to decide whether or not to extend credit.

A credit card's annual percentage rate divided by 365 days.

Your income compared to the debt you owe.

Failure to fulfill an agreed-upon financial obligation, such as making a loan payment.

To release a debtor from responsibility for a debt, often as a result of bankruptcy.

An instance in which a judge has ruled against a consumer's petition for bankruptcy, sometimes at the consumer's request. Such cases are recorded in the public records section of the consumer's credit report, and the debts covered in the bankruptcy remain outstanding.

To question the accuracy of information on a credit report. Disputes may now be effectively resolved online by notifying Equifax.

A federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of income from public assistance programs.

Equifax credit monitoring service plus unlimited access to your credit report. Equifax Credit Watch¿ Gold will email notifications to you within 24 hours of any key changes in your credit file, which may be warning signs of identity theft. Also includes up to $25,000 identity theft insurance¿.
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A federal law that among other things enables consumers to learn what information consumer reporting agencies have on file about them, and to dispute errors in the file. It also specifies certain permissible purposes for which credit reports may be furnished. It provides consumers with the right to obtain a copy of their report at no charge if their have been turned down for credit.

A credit score derived from the application of a credit scoring model created by the Fair, Isaac Company to a consumer's credit file held by a credit reporting company. FICO® scores range from the 300s to the 900s, but almost all consumers have a score between 500 and 850.

A company that mainly lends money to consumers who cannot qualify for credit at a credit union or bank. Finance companies generally charge higher rates than other creditors.

The legal process by which a creditor may sell mortgaged property to recover a defaulted mortgage.

A legal process whereby a creditor has obtained judgment on a debt allowing him to receive full or partial payment by seizure of a portion of the debtor's assets (wages, bank account, etc.).

What you earn before taxes are deducted.

An indication on your credit file that a lender has obtained a copy of the report in order to evaluate your loan or credit application. An excess of hard inquiries within a six-month period may lower your credit rating. All the inquiries Equifax makes when you purchase our products and services are soft inquiries.

A loan secured by a primary residence or second home to the extent of the excess of fair market value over the debt incurred in the purchase. Interest on a home equity loan may be tax deductible, but if you fail to pay your home equity loan, your home could be sold to pay off the debt.

A fast-growing crime that occurs when someone uses your personal information to fraudulently obtain credit. For more information, see how identity theft identity theft strikes.

A credit account in which the amount of the payment and the number of payments are predetermined or fixed.

The amount charged by a lender for borrowing money.

A bankruptcy instigated by creditors rather than the debtor.

A credit or loan account held by two or more people. All account holders assume legal responsibility for the repayment of the account.

A determination by a court of law that, in the case of credit, may require a person to fulfill an obligation -- to pay a debt, for example. When a judgment has been satisfied(i.e. the debt has been paid or settled), the consumer has fulfilled its requirements and is no longer liable. Information about judgments is recorded in the public records section of a credit report.

A fee attached to a delinquent account.

A contract that allows you the right to use or occupy property (a car or apartment, for example) over a specific length of time, during which you make regular payments and after which you do not own the property.

In the context of credit, legal responsibility for the repayment of a debt.

A credit limit established by a creditor.

The ratio of the amount of a home loan to the appraised value of the home. For example, if you borrow $75,000 to buy a $100,000 house, the LTV is 75%. As a general rule, the lower the LTV, the more favorable the terms of the loan will be.

See 3-in-1 Credit Report

A loan designed to facilitate the purchase of a home, in which the home itself serves as security for the loan. If the borrower doesn't make the required payments, the lender may through a legal process known as foreclosure, sell the home in order to recover the amount owed on the mortgage. "Mortgage" can also refer to the legal document detailing the borrower's responsibilities, including the payment schedule and terms.

Your total income from employment and other sources, minus taxes.

After seven years, negative information on your credit report is considered "obsolete" and should automatically fall off your credit report. The exception is a Chapter 7 bankruptcy, which remains on your report for 10 years.

Limiting the sharing of information about you to others, such as opting out of credit or insurance offers that were not initiated by you.

An interest rate expressed in daily or monthly terms, calculated by dividing the annual percentage rate by 365 or by 12.

The maximum amount one can owe at any time, based on income, debt and credit history.

Charges levied by a mortgage lender, usually paid at closing. One point equals 1% of the value of the loan.

The person under whose name a credit card account is listed. A primary user can authorize other people to use the account, but the primary user is ultimately responsible for repaying all charges.

The outstanding balance of a loan, exclusive of interest and other charges.

Information obtained from court records about such things as state or federal tax liens, bankruptcy filings and judgments against you in civil actions.

The ratio of your monthly expenses to your gross monthly income. Creditors use qualifying ratios to evaluate loan applications.

Restructuring your home loan to get a lower interest rate or to borrow money from the amount you've already paid on a loan.

The total balance of all revolving credit accounts.

A judgment is satisfied when the debtor has fulfilled its requirements -- paid the outstanding amount, for example -- and is no longer liable.

A mortgage taken out on a home that has an existing mortgage. A home equity loan is a type of second mortgage.

A loan for which an item of property has been pledged in case of default. A mortgage is an example of a secured loan.

You have the right to place a security freeze on your Equifax Credit File under state law or the Equifax voluntary security freeze program. A security freeze will limit us from reporting your Equifax credit file to third parties, such as credit grantors or other companies and agencies, except those exempted by law or those for whom you contacted us and requested that we temporarily lift the security freeze. For a complete list of exceptions see  Security Freeze Exceptions.  To determine the fees for placing, requesting a temporary lift, or removal of a security freeze, please see  State Freeze Requirements and Fees.

Only you can request a security freeze be placed on your Equifax credit file and only you can request the security freeze be removed or temporarily lifted. A security freeze will remain on your Equifax credit file until you request the security freeze be permanently removed or you request a temporary lift of the security freeze for a specific credit grantor/credit file user or date range.

A security freeze will require you to plan ahead for all your credit applications as you will need to contact us to request that we temporarily lift your freeze to allow us to report your Equifax credit file to the credit grantor you identify. Under the laws of most states and the Equifax voluntary security freeze program, it may take up to three business days to process your request to temporarily lift the security freeze. It may take longer if you have lost the security freeze confirmation number which we provided to you when you first requested the security freeze be placed on your Equifax credit file. You may not be able to request a temporary lift of a security freeze during non-business hours or on weekends. A security freeze may hinder your ability to immediately obtain credit to make major purchases. Accordingly, if you are credit active and apply for credit on a regular basis and have a security freeze on your Equifax credit file you need to be especially mindful of the need to plan ahead and contact us in advance to request a temporary lift of the security freeze on your Equifax credit file.

An alternative to a security freeze under state law and the Equifax voluntary security freeze program is Equifax Credit Watch¿ with Equifax Credit Report Control™.  This online subscription product provides you the ability to easily lock and unlock access to your Equifax credit report online and alerts you of key changes in your credit report within 24 hours so you cn take action quickly to stop any potential fraud or unauthorized activity.  You may lock and unlock your Equifax credit report for a period of time - or even for specific companies - when applying for loans, credit cards or insurance.  Together with Equifax Credit Watch, Equifax Credit Report Control is, we believe, the most effective product to prevent identity theft from ruining yur credit.

See closing.

The unique nine-digit number assigned to every legal resident of the United States by the Social Security Administration. Because no two people are assigned the same number, the SSN is usually the main identifying factor in a person's records, including credit reports.

A charge upon real or personal property for the satisfaction of debts related to taxes

Name for the traditional trio of basic criteria lenders consider when deciding whether to approve a loan: character, capacity, and capital (or collateral).

A credit industry term for an account listed on a credit report.

See 3-in-1 Credit Report.

A loan based on your promise to repay, not on pledged collateral. Compare secured loan.

A judgment that has been rendered void or set aside is said to be vacated.

A bankruptcy filed at the consumer's request.

The three- to five-year repayment schedule in a Chapter 13 bankruptcy. The consumer must turn over disposable income to a bankruptcy trustee, who in turn repays creditors.