CREDIT AND DEBT

A credit agency, also known as a credit bureau, is a company that collects and analyzes information about your credit history. This information includes your payment history, credit accounts, and any debts you have. Credit agencies use this information to issue credit reports, which are used by lenders and other businesses to evaluate your credit […]

Definition: A credit reference is a report prepared by a credit reporting agency (CRA) that summarizes an individual’s credit history. It typically includes information about an individual’s payment history, credit balances, and any open or closed credit accounts. Key Components: Payment history: Records of payments made on time, late, or in default. Credit balances: Current […]

Credit Utilization Ratio (CUR) The credit utilization ratio (CUR) is a key credit score factor that measures the percentage of your available credit that you are actually using. It’s calculated by dividing your total revolving credit utilization (the total amount you’re borrowing on credit cards and other revolving credit accounts) by your total credit limit. […]

Sure, here’s what an account inquiry might mean: Account Inquiry Definition: An account inquiry is a request for information about a specific account, typically a financial account, made by a customer or account holder. It involves inquiries about various aspects of the account, such as its balance, transactions, account history, statements, and any other relevant […]

The word “obligor” is an adjective meaning “one who is obligated.” It also has a noun meaning “one who is obligated.” Definitions: Obligor (adjective): Required or expected to do something. A person who is obligated to do something. A feeling of duty or obligation. Obligor (noun): A person who is obligated to do something. Something […]

Credit Scoring Credit scoring is a process of evaluating an individual’s credit history to determine their credit worthiness. It is a numerical representation of a borrower’s credit behavior, typically ranging from 300 to 850. Factors Affecting Credit Score: Payment History: Payment behavior on bills and loans, including the timely payment of due dates. Utilization Ratio: […]

Open-End Credit Open-end credit is a type of credit that allows the borrower to borrow money as needed, up to a certain limit. The lender does not specify how the borrower will use the credit, but does require that the borrower repay the principal and interest charges on the borrowed amount. Types of Open-End Credit: […]

Definition: A credit mix is a measure of an individual’s credit behavior based on the mix of credit accounts they have open. It includes the number and types of credit accounts, such as revolving credit accounts (e.g., credit cards), installment loans, and mortgage loans. Factors Affecting Credit Mix: Number of Credit Accounts: Having a low […]

An account history is a record of all the activities that have occurred with a specific account, such as a bank account, a credit card account, or a stock account. It typically includes the following information for each transaction: Date: The date of the transaction. Time: The time of the transaction. Description: A description of […]

Credit and Debt Credit and debt are two important financial concepts that are inextricably linked. Credit:* A measure of an individual’s creditworthiness, based on their past borrowing and repayment behavior.* Determined by three credit bureaus: Equifax, Experian, and TransUnion.* Credit scores range from 300 to 850, with higher scores indicating better creditworthiness. Debt:* An amount […]