What Does That Mean? A Guide to Equifax^® Credit Report Terminology

Highlights:

• Some terms on your Equifax^® credit report may be unfamiliar to you.
• Here is a guide to definitions of terms you may see on Equifax credit reports.
• Checking your credit reports can help ensure your information is accurate and complete.

Understanding the details of your credit reports is important. But, you may not always understand some of the terms used. We've defined some terms you may find when checking your Equifax credit report.

• Account Age. This is the length of time a credit account has been open. When you apply for credit, some lenders may look at the age of the oldest account on your credit reports. They want to see the length of your credit history. For instance, the age of your oldest account might be 12 years, with the average age of your accounts at 8 years.
• Account Status. This states if a credit account is open or closed. It also looks at your payment behavior at the time of the last update reported by the lender or creditor. There are a few different status descriptions that mean different things. These include “pays or paid as agreed,” or “account included in bankruptcy” or “collection account”. It also includes if you are not paying the account as agreed.
• Balance. This is the amount you owe on an account at the time of the last update reported by the lender or creditor. This may differ from the current balance on your account. It all depends on when a lender or creditor reports to credit bureaus.
• Bankruptcy Filing Date. This is the date a lender filed a bankruptcy petition (if you have a bankruptcy on your credit file).
• Charge-Off. This means the lender or creditor has written the account off as a loss due to lack of payment. The lender has closed the account to future charges. Your lender may then sell it to a debt buyer who will then attempt to collect the outstanding amount from you.
• Collection Account. If you do not pay your bills for some time, the lender or creditor may transfer your account to a collection agency. The collection agency will then attempt to collect the debt from you. The account will show on your credit reports as a collection account.
• Credit Limit. The amount of credit extended to you to spend. Credit limit applies to revolving accounts. These include credit cards, retail store cards, or personal lines of credit. Sometimes you may see a summary of credit limits. If you have two credit cards with a $5,000 credit limit each, your total combined credit limit is $10,000.
• Good Standing. An account that you have paid off or is being paid as agreed at the time of the last update from the lender or creditor.
• Inquiries. Requests for a copy of your Equifax credit report. When you apply for credit, a potential lender or creditor will generally access one or more of your credit reports to help inform its decision whether or not to extend you credit. This type of inquiry is generally considered a “hard” inquiry and is visible to anyone who obtains a copy of the credit report that was accessed. Hard inquiries can also impact credit scores. Other types of inquiries are considered "soft" inquiries. One example of a soft inquiry is a promotional inquiry that is posted when your credit file is accessed in connection with a pre-screened offer of credit or insurance. Another example might be when you check your own credit reports. Soft inquiries do not impact credit scores.
• Installment Account. A type of credit account which is often repayable in set monthly installments. The loan will show as closed on your credit report when repaid in full. An example of an installment account would be an auto loan or a student loan.
• Original Creditor. If your account gets sent to a collection agency, they report the name of the original creditor. The original creditor name helps you identify the source of that account on your reports.
• Payment Responsibility or “Whose Account”. This shows what type of account it is and who pays the loan. If it is an individual account, only you are responsible for repayment. If it is a joint account, you and other[s] are responsible for repayment. If you are an authorized user on an account, you are not responsible for repayment.
• Promotional Block. A promotional block means you've opted out of receiving pre-screened offers.
• Revolving Account. An account that establishes a max credit limit for a consumer, such as a credit card. A balance can carry over from month to month and may incur interest. The outstanding balance amount is what lenders use to calculate the payment amount.

When reviewing your credit reports, always check that the information is up to date. That way, lenders are getting an accurate picture of your credit situation. If you see something that is inaccurate or incomplete, contact the lender or creditor. You can also file a dispute for free with any of the three nationwide credit bureaus. Visit our dispute page to learn how to file a dispute with Equifax.