|Credit scoring and credit report glossary
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13. FICO score -- The most commonly used credit score. The name comes
from the Fair Isaac Corporation, which developed the
scoring model. The score is used to predict the likelihood
that a person will pay his or her debts. The scores
use only information from credit reports.
14. Hard inquiry -- An item on a person's credit report that indicates
that someone has asked for a copy of the individual's
report. Hard inquiries are requests that result from
a person applying for credit, such as a mortgage,
a car loan, a credit card or a rental application.
They are included in the formula for determining a
person's credit score.
15. Installment credit -- A type of credit in which the monthly payment is
the same every month and the loan has a set time period.
The most common forms of installment credit are mortgages
and auto loans.
Public record -- Information on your credit
report that has been obtained from court records,
such as bankruptcies, judgments and liens. These are
17. Revolving credit -- An account that requires a minimum payment each
month plus service charges on the remaining balance.
As the balance declines, so does the service charge.
18. Scoring model -- A statistical formula used to calculate scores
based on data such as information from a consumer's
19. Soft inquiry -- An item on a person's credit report that indicates
that someone has asked for a copy of his or her report.
Soft inquiries can be from current creditors reviewing
the file, prospective creditors who want to send out
an offer such as a preapproved credit card, or a person's
own review of their file. They are not included in
the formula for determining a person's credit score.
Trade line -- An account listed on a credit
report. Each separate account is a different trade
For a complete list of credit scoring terms, check out our glossary.