Glossary

Although repairing credit today has never been easier, it can still be a complicated process for the inexperienced. Even using the Credit Repair Made Easy service, you're bound to come across a couple terms you don't completely understand. Fortunately, we have a resource for anyone that finds themselves a little confused about credit repair terms. Learn the definitions to everything need to know about credit repair in this glossary:

Annual Fees: A yearly fee charged by creditors for the privilege of using a credit card. Most credit cards today do not charge annual fees, unless the borrower has a poor credit score.
Annual Percentage Rate(APR): The interest rate on a debt expressed in a yearly percentage. Generally, higher credit scores can attain lower APRs.
Closed Date: This is the date an account was closed. Credit reports usually contain the closed dates for a consumer's accounts. Many reports contain inaccurate information regarding closed dates, which require the consumer to dispute.
Credit Bureau: Also referred to as a credit reporting agency, credit bureaus are private companies that collect and sell information regarding consumer credit history. The major credit bureaus or Trans Union, Equifax, and Experian.
Credit Limit: The maximum amount of debt that can be placed on an account. Consumers with better credit scores tend to receive higher credit limits.
Credit Report: A detailed account of your credit history, containing information about your total debt and payment history. Usually supplied by a credit bureau.
Credit Score: A numerical summary of one's creditworthiness, as inferred from a credit report. The higher the score, the more creditworthy one is.
Delinquent: Delinquent or delinquency refers to accounts that have failed to make payments on time. Several delinquent payments can lead to a lower credit score.
Dispute: In regards to credit repair, a consumer's claim of inaccurate information on their credit report. Disputing inaccurate information is essential to repairing credit.
Fair Credit Reporting Act(FCRA): A federal law created to prevent obsolete or incorrect information from entering a credit report. It requires that credit bureaus investigate any errors on a consumer's credit report. If that information is incorrect or unverified, it is to be permanently removed.
Good Standing: Refers to the status of an account. Accounts in good standing generally reflect favorably on credit scores.
Interest: The cost of borrowing money from a lender, usually expressed in a percentage of the total amount borrowed. Those with poor credit scores will generally pay more money in interest for borrowing.
Principal: The total amount of money owed to a lender, not including interest.
Service Charge: A fee associated with financing or using credit, such as fees for going over an account's credit limit.
Statement: A monthly record of an account's status and transactions.
Terms: Refers to the debt repayment agreement between a consumer and creditor.