FICO Scores Key Terms

Understand your FICO score by learning key terms

In order to obtain business loans or credit cards, you need to have good credit. The more you know about your FICO score and all the terms you will find in your credit report, the closer you will be to improving your credit. Being familiar with the main terms associated with a FICO score will help you understand your credit report.

 

Fair Isaac and Company (FICO) score

The Fair Isaac and Company (FICO) score is a way to fairly compare credit across the nation. A high FICO score may enable you to obtain low rates on home loans or credit cards, while a low score may prevent you from getting much credit at all.
Try: CreditReporting.com explains FICO scores.

Credit bureau

A credit bureau is one of the companies that keeps track of your credit history and offers a score. The three main credit bureaus from which you can get your credit report and score are Experian, Equifax and TransUnion.
Try: A FICO Score defines a credit bureau and provides links to the three major credit bureaus.

Consumer credit file

A consumer credit file is what the credit bureaus have on record for each person with credit. It typically includes your contact information, credit history and more.
Try: Visit the glossary at myFICO to learn what a consumer credit file might include.

Inquiry

An inquiry occurs when a company looks at your credit report, usually to determine whether you would qualify for credit. Some companies also look at your report to gain information about you in order to direct their marketing efforts.
Try: CreditCards.com explains what an inquiry is when it comes to viewing your FICO score.

Revolving debt

Many people have a few lines of revolving debt on their credit report. This type of account allows you to continually spend money and then pay it off, keeping it open for years. A credit card is an example of a revolving debt account.
Try: Go to Credit.org to learn about many FICO terms, such as a revolving debt.

Installment debt

Installment debt is a debt or loan you will eventually pay off by making monthly payments. The most common installment debts are home loans, car loans and student loans.
Try: Investopedia explains installment debt.

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