Bad Credit Article
Fix Bad Credit: Credit Repair Terms
There are so many credit repair terms that it can be confusing to hear what a creditor or financial advisor has to say for your financial needs. If you are looking to improve your credit then you will need to know some important credit repair terms.
The first of the credit repair terms is ACH debit. ACH stands for Automated Clearing House. With an ACH debit account you can withdraw funds from your bank electronically. This is generally easier to do because you can get the money that you wanted faster than if you used a mail service to get that money. Some creditors will have access to ACH debit accounts that you may get before you get access to it, so you should check the fine print when signing up for an ACH debit account.
A consumer credit counseling service is a company that is used in credit repair talk all of the time. A counseling service can be great for helping you if you cannot keep up with the bills that you are getting, but if you are going to use this service you should use it with a group that is well reputable and established.
A charge-off is another of the credit repair terms that you should know. A charge-off is done by a collector that has tried to collect your debts several times and is going to assume after a while that you will not pay. An unpaid charge-off will be listed on your credit report unless you pay it off over time. After you pay off the unpaid charge-off it will become a paid charge-off. It is important to avoid a charge-off so that you will not have to pay more than you already have to.
Two of the credit repair terms that are similar but still very different are the cosigner and authorized user. Both of these people have access to an account, but the cosigner is the one that is liable for payments. The authorized user is the person the cosigner has allowed to have access to the account. If the cosigner defaults then the authorized user will be able to get access to the accont.
The FICO score is one of the credit repair terms that is being more recognizable. FICO is the Fair Isaac and Company, a credit scoring group. If a lender says that a person cannot take out any financial services because of a low FICO score that means the person has a low credit score.
An inquiry is a look into a person’s credit report with that person’s permission. At the end of the credit report there is a list of inquires that is used to show who has asked the person for access to the credit report. If there are too many inquires then the person’s credit score will go down.
The last of the credit repair terms is revolving credit. This is a type of credit where the balance changes when purchases or payments are made. Credit cards generally use revolving credit. This is not the case for loans because all of the money is given in one load and additional money cannot be taken out.
