Credit History

Definition

• The financial worthiness of a borrower. The history of whether the borrower has met financial obligations on time in the past.

Synonyms
dossier, track record, credit summary

Related Terms and Acronyms

• Credit — Definition,
  • Money that a lender gives to a borrower on condition of repayment over a certain period.
• Credit Bureau (CB) — Acronym, Very Important,
  • A company that collects and sells information about how people handle credit. It issues credit reports that list how individuals manage their debts and make payments, how much untapped credit they have available and whether they have applied for any loans. The reports are made available to individuals and to creditors who profess to have a legitimate need for the information.
  ➥ Company that determines one's credit worthiness.
• Credit Reporting Agency (CRA) — Acronym,
  • An organization that prepares reports that are used by lenders to determine a potential borrower's credit history. The agency obtains data for these reports from a credit repository as well as from other sources.
• Credit Risk — Definition,
  • The risk of loss assumed under a financial contract that a borrower or a counter-party to a loan or other credit-related contract may default or fail to fulfill its obligations.
• Credit Score — Definition,
  • Also referred to as a 'Beacon Score' is a number, between 300 and 900, that reflects a person's credit history. Lenders calculate this number using a computer system as part of the process for assigning rates and terms to the loans they grant.
• Credit Worthiness — Definition,
  • How likely an individual or entity is to default on their debt.
• Equifax (EF) — Company Est. 1899, Canada, Important,
  • A major credit bureau company in Canada along with Trans Union.
• Experian (XP) — Company, Canada,
  • One of the Big Three credit bureaus, along with Equifax and Trans Union, Experian not normally used in Canada.
• Joint Credit — Definition,
  • Credit that is issued to two people based their credit reports and their combined assets and incomes. The repayment of joint credit is the responsibility of both parties.
• Merged Credit Report — Definition,
  • A summary of one's credit history from the big two credit bureaus: Equifax and Trans Union.
• No Credit History — Definition,
  • To have no record of an individual's credit worthiness.
• Revolving Credit — Definition,
  • A line of credit that does not have a specified repayment schedule but may require a minimum payment to cover interest and contribute to paying off principal. Typical of credit card loans, chequing account cash reserve or overdraft accounts that have pre-approved lines of credit.
• Social Insurance Number (SIN) — Acronym, Canada, Very Important,
  • Every person who has an income or pays taxes must apply for this number, which is assigned by the Government of Canada. You must, by law, provide this number to financial institutions with which you have an interest-bearing deposit account.
  ➥ A nine-digit number that you need to work in Canada or to have access to government programs and benefits. Banks may also request your SIN for tax purposes or to verify credit checks.
• Solicitor Information — Definition,
  • When you apply for a mortgage you will need a law firm with a lawyer's name and their contact information which would typically include the office location, phone number, fax number and e-mail address.
• Standard Card — Definition,
  • The basic card offered by issuers. Customers with higher incomes and good credit reports can qualify for the higher-limit gold and platinum cards.