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Credit glossary

Clear, practical definitions of the terms you will see in UK credit reports and lending decisions.

Showing 400 of 400 terms

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Explore terms by topic (indexable category hubs).

Top terms

Start with the most common credit definitions.

Credit scoreA number that summarises your credit risk based on information in your credit report.Credit reportA record of your borrowing history, repayments, and credit accounts held by a credit reference agency.Credit utilisationThe percentage of your available credit that you are currently using.Hard searchA credit check that is visible to lenders and can affect your credit score.Soft searchA credit check that does not affect your credit score and is not visible to other lenders.Credit cardA revolving credit account that lets you borrow money up to a set limit.Personal loanA fixed-term loan where you borrow a set amount and repay it over time.MortgageA long-term loan used to buy property, secured against the home.APRAnnual Percentage Rate, a measure of the cost of borrowing over a year, including interest and some fees.Interest rateThe percentage charged on borrowed money, usually expressed annually.Balance transferMoving debt from one credit card to another, often to take advantage of a lower interest rate.Credit reference agency (CRA)A company that collects and holds information about your borrowing history and provides it to lenders.Rent reportingThe practice of reporting rent payments to credit agencies so they count toward your credit history.Affordability assessmentA lender check that looks at your income and outgoings to decide if you can comfortably repay credit.Credit builder cardA credit card designed for people with limited or poor credit history, intended to help build a positive payment record.DefaultA marker added to your credit report when a lender closes an account after missed payments.County Court Judgment (CCJ)A court order in England, Wales, or Northern Ireland stating you must repay a debt.Individual Voluntary Arrangement (IVA)A formal agreement in the UK to repay a portion of debts over time.BankruptcyA legal process for people who cannot repay their debts, which has a significant impact on your credit profile.Debt management plan (DMP)An informal agreement to repay debts at a reduced rate over time.

Browse by letter

A

Account age

How long a credit account has been open.

Account close date

The date a credit account was closed.

Account in collections

An account that has been passed to collections due to non-payment.

Account open date

The date a credit account was first opened.

Account reported balance

The balance a lender reports to a credit agency for an account.

Account reporting

The data a lender sends to credit agencies about your account.

Account status

The current state of a credit account, such as up to date, late, in arrears, or defaulted.

Account status code

A code used by lenders to show whether an account is up to date, late, or in default.

Account status update

A change in how a lender reports your account status each month.

Account takeover

When someone gains access to your account and uses it without permission.

Address history

The list of addresses on your credit file over time.

Address mismatch

When the address on your application does not match what is on your credit file.

Address verification

Checks used to confirm your current and previous addresses.

Admission form

A court form used to admit a debt and propose repayments.

Adverse credit

A term lenders use for a history of missed payments or serious credit issues.

Affordability assessment

A lender check that looks at your income and outgoings to decide if you can comfortably repay credit.

Affordability buffer

Extra headroom lenders expect after essential spending and repayments.

Affordability stress test

A check that tests whether you could afford repayments if costs rise.

Agreement in principle (AIP)

A lender’s initial indication of how much it may lend for a mortgage.

Alias name

An alternative name or spelling that appears on your credit file.

AML check

Anti-money laundering checks used to prevent financial crime.

Annual fee

A yearly charge for holding a credit card or account.

Application fee

A fee charged when you apply for a credit product.

Application fraud

Fraudulent credit applications made in someone else’s name.

APR

Annual Percentage Rate, a measure of the cost of borrowing over a year, including interest and some fees.

Arranged overdraft

An overdraft limit agreed in advance with your bank.

Arrangement fee

A fee charged by a lender for setting up a mortgage or loan.

Arrangement to pay

An agreement with a lender to pay less than the original amount for a period of time.

Arrangement to pay marker

A credit file marker showing you agreed reduced payments with a lender.

Arrears

A situation where payments are overdue and you are behind on what you owe.

Arrears level

A measure of how far behind you are on payments.

Arrears status

A label on your credit file showing an account is behind on payments.

Assignment of debt

The legal transfer of a debt from one company to another.

Attachment of earnings

A court order that takes money directly from your wages to repay a debt.

Attachment of earnings order

A court order that takes payments directly from your wages.

Available credit

The amount of credit you can still use before reaching your limit.

Average account age

The average length of time your credit accounts have been open.

B

Bailiff

An enforcement agent who collects debts under a court order.

Bailiff entry

Rules about when and how a bailiff can enter your home.

Bailiff fees

Charges added by enforcement agents when they pursue a debt.

Balance at reporting

The amount shown on your credit report at the time of reporting.

Balance transfer

Moving debt from one credit card to another, often to take advantage of a lower interest rate.

Balance transfer APR

The interest rate applied to transferred balances on a credit card.

Balance transfer card

A credit card designed for moving existing debt at a low or 0% rate.

Balance transfer fee

A fee charged when you move debt from one credit card to another.

Balance transfer limit

The maximum amount you can move onto a balance transfer card.

Balloon payment

A large final payment due at the end of a loan agreement.

Bank statement review

Using bank statements to assess income and spending.

Bankruptcy

A legal process for people who cannot repay their debts, which has a significant impact on your credit profile.

Bankruptcy discharge

The point at which most bankruptcy restrictions end.

Bankruptcy petition

A formal request to the court to declare someone bankrupt.

Bankruptcy Restrictions Order (BRO)

A court order that extends restrictions on someone after bankruptcy.

Bonus income

Extra pay received as a bonus on top of basic salary.

Booking fee

A fee paid to reserve a mortgage or loan deal.

Breathing Space

A UK scheme that pauses most debt enforcement actions for a limited period.

Breathing Space moratorium

The period when most debt enforcement is paused under the UK Breathing Space scheme.

Broadband contract

A monthly agreement for internet service, usually with a credit check.

Broker fee

A fee charged by a broker for arranging a mortgage or loan.

Budgeting plan

A structured plan for managing income and expenses.

Buy now, pay later (BNPL)

A short-term credit option that lets you split payments over time.

Buy now, pay later limit

The maximum amount you can spend using a BNPL provider.

C

Car finance

A range of credit products used to fund a vehicle purchase.

Cash advance

Withdrawing cash using a credit card, usually with fees and higher interest.

Cash advance fee

A fee charged when you withdraw cash using a credit card.

Cashback card

A credit card that returns a percentage of your spending as cash rewards.

Catalogue credit

A type of credit that lets you buy items from a catalogue and pay over time.

CCJ settlement

Paying a CCJ in full so it can be marked as satisfied.

Charging order

A court order that secures a debt against a property.

Child maintenance arrears

Unpaid child maintenance payments that are overdue.

CIFAS marker

A fraud prevention marker placed on a credit file by the UK fraud database, CIFAS.

ClearScore

A credit score and report provider that uses Equifax data in the UK.

Closed account

A credit account that is no longer active or open for new spending.

Collections

A stage where overdue debts are actively pursued for repayment.

Committed expenditure

Regular payments you must make, such as rent, loans, and utilities.

Complaint to the Ombudsman

Escalating a lender complaint to the Financial Ombudsman Service.

Consolidation loan

A loan used to combine multiple debts into one payment.

Contractor income

Income earned from contract or freelance work.

Council tax

A local tax paid to councils for services such as waste collection.

Council tax arrears

Unpaid council tax that has fallen behind schedule.

County Court Claim

A formal claim issued through the county court to recover a debt.

County Court claim form

The official form issued when a creditor starts a court claim for a debt.

County Court Judgment (CCJ)

A court order in England, Wales, or Northern Ireland stating you must repay a debt.

Credit account

Any account where you borrow money or receive credit, such as a card, loan, or overdraft.

Credit age

How long you have been using credit, often measured by the age of your oldest account.

Credit agency

A common shorthand for credit reference agencies that store your credit history.

Credit agreement

A contract between you and a lender that sets the terms of borrowing.

Credit band

A range within a credit score scale that groups scores into labels such as excellent or poor.

Credit builder card

A credit card designed for people with limited or poor credit history, intended to help build a positive payment record.

Credit builder loan

A loan designed to help build credit by reporting on-time payments, often with funds held until the loan is repaid.

Credit card

A revolving credit account that lets you borrow money up to a set limit.

Credit card eligibility

An estimate of how likely you are to be accepted for a specific credit card.

Credit check

A review of your credit report by a lender or service provider.

Credit enquiry

A record of a credit check made by a lender or service provider.

Credit file

Your full record at a credit reference agency, including accounts, payment history, and public records.

Credit file freeze

A block that stops new lenders from accessing your credit report.

Credit file suppression

When a credit file is limited or hidden due to special circumstances.

Credit health

A general term for the strength and stability of your credit profile.

Credit history

A record of how you have used and repaid credit over time.

Credit history length

The length of time you have been using credit.

Credit Karma

A credit score and report provider that uses TransUnion data in the UK.

Credit limit

The maximum amount you can borrow on a credit card or overdraft at any one time.

Credit limit decrease

When a lender reduces the maximum amount you can borrow on a credit card.

Credit limit increase

A higher limit approved by your lender, which increases how much you can borrow.

Credit limit review

A lender’s review of your credit limit based on account activity and risk.

Credit limit usage

How much of your credit limit you are currently using.

Credit lock

A tool that lets you quickly restrict access to your credit file.

Credit mix

The variety of credit types on your report, such as credit cards, loans, and mortgages.

Credit monitoring

A service that tracks changes on your credit report and alerts you to updates.

Credit profile

A broad view of your credit history, score, and risk signals shown on your report.

Credit rating

A general term for how lenders view your credit risk, often based on your credit report and score.

Credit rebuild

The process of improving your credit score after past problems.

Credit reference agency (CRA)

A company that collects and holds information about your borrowing history and provides it to lenders.

Credit report

A record of your borrowing history, repayments, and credit accounts held by a credit reference agency.

Credit report correction

An update that fixes incorrect information on your credit report.

Credit report dispute

A request to correct incorrect or incomplete information on your credit report.

Credit score

A number that summarises your credit risk based on information in your credit report.

Credit score boost

A feature that adds extra data, such as bank transactions, to your credit profile.

Credit score factor

A part of your credit history that influences how your score is calculated.

Credit score model

The formula or system used to calculate a credit score.

Credit score simulator

A tool that estimates how actions might affect your credit score.

Credit search footprint

A record on your credit file that a lender or service checked your report.

Credit union loan

A loan offered by a member-owned credit union.

Credit utilisation

The percentage of your available credit that you are currently using.

Credit utilisation ratio

Another term for credit utilisation, calculated as balance divided by total credit limit.

Creditor

A person or organisation that is owed money.

Creditor petition

A legal request by a creditor to make someone bankrupt.

Current balance

The total amount owed on a credit account at a given moment.

D

Data accuracy

How correct and up to date the information on your credit report is.

Data correction

An update that fixes incorrect information on your credit report.

Data suppression

When certain credit data is hidden or not shared in a report.

Debt advice

Guidance that helps you manage or resolve problem debt.

Debt Arrangement Scheme (DAS)

A Scottish program that helps people repay debts through an approved plan.

Debt avalanche

A repayment method where you focus on the highest interest debt first.

Debt buyer

A company that buys unpaid debts and then collects them.

Debt collection

The process of recovering unpaid debts, often carried out by lenders or collection agencies.

Debt collection agency

A company hired or assigned to recover unpaid debts.

Debt management plan (DMP)

An informal agreement to repay debts at a reduced rate over time.

Debt purchase

When a lender sells a debt to another company.

Debt Relief Order (DRO)

A formal insolvency solution for people with low income and minimal assets.

Debt Relief Restrictions Order (DRRO)

An order that extends restrictions after a Debt Relief Order.

Debt snowball

A repayment method where you pay off the smallest debts first.

Debt write-off

When a lender decides not to pursue repayment of a debt, often after default.

Debt-to-income (DTI)

A ratio that compares your monthly debt payments to your monthly income.

Debtor

A person who owes money to a creditor.

Deed of assignment

The legal document that transfers a debt from one owner to another.

Default

A marker added to your credit report when a lender closes an account after missed payments.

Default balance

The amount recorded as outstanding when an account is defaulted.

Default date

The date a lender records an account as in default on your credit file.

Default marker

A credit file entry showing an account has been defaulted.

Default notice

A formal letter sent before a lender records a default on your account.

Default status

An account status showing a lender has formally defaulted the account.

Defaulted account

A credit account that a lender has marked as in default due to missed payments.

Defence form

A court form used to dispute a debt claim.

Delinquency

The stage where payments are overdue and considered late.

Deposit

The upfront amount you pay toward a purchase, reducing how much you need to borrow.

Direct debit

A payment method that automatically collects money from your bank account.

Disassociation

A request to remove a financial association from your credit file.

Disposable income

The money left after paying essential bills and expenses.

Dispute letter

A written request asking a lender or agency to correct credit report errors.

Dispute resolution

The process of resolving errors or disagreements on a credit report.

DRO cancellation

When a Debt Relief Order is ended early, usually due to changed circumstances.

DRO eligibility

The rules that determine whether you qualify for a Debt Relief Order.

DRO moratorium

The period when a Debt Relief Order is active and creditors cannot take action.

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I

Identity check

A process used to confirm your identity when applying for credit.

Identity theft

When someone uses your personal information to open accounts or take credit in your name.

Identity verification

A process lenders use to confirm you are who you say you are.

Impersonation

When someone pretends to be you to access credit or services.

Income and expenditure

A breakdown of how much money you receive and spend each month.

Income multiple

A rule of thumb that links income to the maximum loan size.

Income Payment Agreement (IPA)

An agreement to make payments from your income during bankruptcy.

Income Payment Order (IPO)

A court order requiring payments from your income during bankruptcy.

Income verification

Checking that your income details are accurate and reliable.

Individual Insolvency Register

A public register listing personal insolvency cases in the UK.

Individual Voluntary Arrangement (IVA)

A formal agreement in the UK to repay a portion of debts over time.

Insolvency

A financial state where you cannot pay your debts as they fall due.

Insolvency Register

A public register that lists certain insolvency cases in the UK.

Instalment loan

A loan repaid in fixed instalments over a set period.

Instalment plan

A plan that spreads a balance into fixed monthly payments.

Interest rate

The percentage charged on borrowed money, usually expressed annually.

Interest-free period

The time on a credit card when you are not charged interest if you pay in full.

Interest-only mortgage

A mortgage where you pay only interest each month and repay the balance at the end.

Interim charging order

A temporary order that secures a debt against a property.

Introductory 0% rate

A temporary 0% interest rate offered on purchases or balance transfers.

Introductory rate

A temporary lower interest rate offered at the start of a credit product.

Irresponsible lending complaint

A complaint that a lender gave credit without proper affordability checks.

IVA completion certificate

A document confirming that your IVA has been successfully completed.

IVA failure

When an Individual Voluntary Arrangement ends without completion.

IVA supervisor

The insolvency practitioner who manages your IVA.

IVA variation

A formal change to the terms of an Individual Voluntary Arrangement.

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P

Partial settlement

A debt settlement where only part of the balance is repaid.

Partial settlement marker

A credit file marker showing a debt was settled for less than the full amount.

Payday loan

A short-term, high-cost loan designed to be repaid quickly.

Payment due date

The date by which you must make at least the minimum payment.

Payment history

A record of whether you have paid your credit accounts on time.

Payment history length

The period of time covered by your on-time and late payments.

Payment holiday

A temporary pause in repayments agreed with a lender.

Payment plan

An agreed schedule to repay a debt over time, often at a reduced amount.

Payment plan review

A check-in to see if a debt repayment plan is still affordable.

Payslip verification

Using payslips to confirm your income for a credit application.

Personal Contract Purchase (PCP)

A car finance agreement with lower monthly payments and a final optional payment to buy the car.

Personal loan

A fixed-term loan where you borrow a set amount and repay it over time.

Positive credit

Good credit behaviour, such as paying on time and keeping balances low.

Possession order

A court order that can require you to leave a property.

Pre-action protocol

Rules that require parties to exchange information before starting court proceedings.

Pre-approval

A provisional indication that you are likely to be accepted for a product, subject to final checks.

Pre-qualification

An early check that estimates your chance of approval, typically using a soft search.

Priority debt

A debt that has serious consequences if you do not pay, such as rent, mortgage, or council tax.

Probation period

An initial period of employment where your job is being assessed.

Product fee

A fee charged for a specific mortgage or loan deal.

Promotional balance transfer

A balance transfer offer with a low or 0% promotional rate.

Promotional rate

A special rate offered for a limited period, often 0% or low interest.

Proof of address

Documents used to verify where you live, such as utility bills or bank statements.

Protective registration

A fraud protection flag that makes lenders carry out extra checks on applications.

Public record

Information from public sources, such as court judgments, that appears on your credit report.

Purchase APR

The interest rate applied to new card purchases.

Purchase card

A credit card that offers a low or 0% rate on purchases for a period.

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S

Satisfied CCJ

A CCJ that has been paid in full and marked as satisfied.

Satisfied status

A label showing a debt or judgment has been paid in full.

Score alert

A notification that your credit score has changed.

Score band

A bucket within a score range that labels scores as excellent, good, fair, or poor.

Score band threshold

The score value where one band ends and another begins.

Score change

Any movement in your credit score, either up or down.

Score drop

A decrease in your credit score.

Score improvement

An increase in your credit score over time.

Score range

The minimum and maximum numbers used by a credit agency to calculate scores.

Score range comparison

Comparing different credit score ranges across agencies.

Score scale

The numerical range used to calculate credit scores.

Score threshold

A score level that lenders use as a minimum for certain products.

Score tracking

Checking your credit score regularly to see how it changes over time.

Search footprint

A record on your credit report showing that a search or check took place.

Secured credit card

A card that uses a cash deposit as security for the credit limit.

Secured debt

Debt that is backed by an asset, such as a house or car.

Secured loan

A loan backed by an asset, such as a home or car.

Self-employed income

Earnings from running your own business or working as a sole trader.

Sequestration

The Scottish term for bankruptcy.

Set aside CCJ

A court process that removes a CCJ in certain circumstances.

Settled account

An account that has been fully paid off and closed.

Settled status

A credit report status showing an account has been closed and paid.

Settlement letter

A letter that confirms a debt has been settled or reduced.

Shared ownership

A scheme where you buy a share of a property and pay rent on the rest.

Shared ownership mortgage

A mortgage used to buy a share of a shared ownership property.

Soft search

A credit check that does not affect your credit score and is not visible to other lenders.

Soft search footprint

A record of a soft check, usually only visible to you.

Standard Variable Rate (SVR)

The default variable rate a lender charges after a fixed deal ends.

Standing order

A fixed payment you set up to send a set amount to another account on a schedule.

Statement balance

The amount you owe at the end of a billing cycle, shown on your statement.

Statement fee

A fee charged for sending a paper statement or account notice.

Status code

A monthly marker on your credit file showing payment performance.

Statute barred debt

A debt that is too old for a lender to pursue through the courts under UK limitation rules.

Statute barred letter

A letter used to respond when a debt may be too old to enforce in court.

Statutory demand

A formal legal demand for payment that can be a step before bankruptcy action.

Store card

A credit card that can usually only be used at a specific retailer.

SVR

Short for Standard Variable Rate, a lender’s default mortgage rate.

Synthetic identity

A fake identity created by combining real and fake information.

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