Credit Glossary

Credit Report 

These are reports that show a history of a member’s credit experience. They contain identifying information, a summary of trade lines (accounts), as well as a history of each individual account, public records, and any inquiries.

Credit Score 

A statistical tool used to predict a member’s future behavior.

Credit Profile 

Consists of information from a member’s Credit Report and their Credit Score. Each member has a unique profile.

Credit Reporting Agency, Credit Reporting Bureau

An organization that compiles information about a member’s credit experience and assigns a Credit Score to rate the likelihood the member will repay future debt. Equifax, Experian and TransUnion are the main three Credit Reporting Agencies/Bureaus.

Inquiry

Once you apply, it is a record of lenders who have obtained access to your Credit Report.

Trade Line 

These are accounts that report to your Credit Report.

Credit Limit 

A set dollar amount of money that a member qualifies to use.

Balance 

This is the amount of money a member owes on a loan or line of credit.

Minimum Payment

This is the lowest acceptable payment that can be paid on a loan or a line of credit.

Revolving 

An account in which you can borrow funds up to your Credit Limit. The money can be used and once the balance is paid down, the funds can be borrowed again. Minimum Payments are calculated as a percentage of the balance and are expected monthly until the balance is paid in full.

Installment 

A type of account with a set dollar amount borrowed that is agreed to be repaid in equal payments for a specific amount of time, called the loan term.

Secured 

A type of loan with collateral, such as a vehicle or home.

Unsecured 

A type of loan with no collateral. These often have higher interest rate than secured loans.

Mortgage 

A loan that is secured with real estate as collateral.