Glossary
Credit report
The detailed record of your borrowing history that your credit score is calculated from — maintained by the three national bureaus.
A credit report lists your accounts, balances, payment history, credit inquiries, and public records like bankruptcies, compiled by the three bureaus — Equifax, Experian, and TransUnion. Your credit score is a number derived from what the report contains, so errors on the report can drag down your score. You are entitled to free reports from each bureau (via AnnualCreditReport.com), and checking them for mistakes before applying for a big loan is one of the highest-return few minutes in personal finance.
Related terms
- Origination fee An upfront charge (0–8% of the loan) deducted before funds reach you. A $10,000 loan with a 5% fee delivers $9,500 — but you repay all $10,000.
- Loan-to-value ratio The loan amount divided by the property's value, expressed as a percentage — a core number in mortgage and home-equity underwriting.
- Hard inquiry A credit check triggered by a real application, which can cost a few points and stays on your report for two years.
- FICO score The most widely used credit-scoring model among lenders, built by Fair Isaac Corporation — often used interchangeably with "credit score," though VantageScore is a common alternative.
- Prepayment penalty A fee some lenders charge for paying a loan off early. Rare on consumer loans, common in commercial lending — always check the note.
- Fixed rate An interest rate that never changes for the life of the loan — your payment is the same every month.