Credit scores

Payment History

A history of the payments you have made on all credit you have obtained, which affects your credit score. Tracks such things as whether or not you pay your bills on time, whether or not you always pay at least the minimum amount, etc.

Credit Bureaus

Credit bureaus, also called credit agencies or credit reporting agencies, are companies that collect credit information about individuals. They then calculate a credit score for each individual based on this information. Note that credit bureaus are private, for-profit businesses-they are not part of the government, though they are overseen by various government agencies. In the United States, the three major credit bureaus are Equifax, Experian, and TransUnion.

Credit Report

A credit report is a record that details a person's credit history. It also includes identifying information, such as names and addresses, so that an individual can be matched with his or her credit history.

Credit History

Credit history is a record of a person's borrowing and repayment activity. Whenever you take out a loan or a line of credit, it goes on your credit history, along with all the payments you make towards the loan. This includes any detrimental information such as late payments. Consumer credit history is tracked by the credit bureaus. Your credit history is the information that goes into your credit report, though the two terms are sometimes used interchangeably. Think of it like this: Credit history is what you've done, while a credit report is where it's written down.

Credit Score

Your credit score is a numerical rating of your credit-worthiness (how likely you are to pay off your debts). In the United States, the most commonly used credit score is the FICO score. Credit score is based on the information in credit reports from the three main credit bureaus.

Name the 3 Major credit bureaus

Equifax Experian Transunion

FICO

FICO is an acronym for the Fair Isaac Corporation, most of the company that developed the FICO score, which is the most commonly used credit score in the United States. There are others, but FICO is most commonly used. When someone says 'credit score,' it's almost always FICO they're talking about. FICO scores range from 300 to 850.

Fair Credit Reporting Act

The Fair Credit Reporting Act ensures that the information in your credit report is accurate, complete, and private. It requires correct use of credit reports. As a consumer, this act also gives you the right to view your credit report and dispute incorrect information.

Fair Debt Collection

The Fair Debt Collection Practices Act aims at doing away with abusive and deceptive practices by those who collect debt. For example, it regulates the hours that collectors may call a consumer and prohibits collectors from publishing a consumer's name or address on a 'bad debt' list.