Credit glossary
Clear, practical definitions of the terms you will see in UK credit reports and lending decisions.
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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.
E
Early repayment charge (ERC)
A fee for paying off a mortgage or loan early during a fixed period.
Early repayment fee
A charge applied when you pay off a loan earlier than agreed.
Electoral roll
The official register of people eligible to vote, which lenders use to verify identity and address.
Eligibility check
A check used by lenders to see how likely you are to be accepted, often using a soft search.
Employment status
Your work situation, such as employed, self-employed, or unemployed.
Energy arrears
Unpaid gas or electricity bills that are overdue.
Energy bill
A bill for gas or electricity usage.
Enforcement agent
The modern term for a bailiff who enforces court orders for debt recovery.
Enforcement costs
Fees and charges added when a debt is enforced through the courts.
Equifax
A major UK credit reference agency with its own credit report and score range.
Essential expenditure
Costs you need for basic living, such as housing, food, and utilities.
Eviction notice
A formal notice that a landlord intends to end a tenancy.
Experian
A major UK credit reference agency with its own credit report and score range.
F
File update
A change to your credit report after new data is reported by a lender.
File update date
The date your credit file was last updated by a lender.
Final charging order
A court order that secures a debt against a property on a long-term basis.
Financial association
A link on your credit file created when you share credit with someone, such as a joint account.
Fixed rate
An interest rate that stays the same for a set period.
Fixed-rate mortgage
A mortgage with a fixed interest rate for a set period.
Forbearance
Temporary relief or flexibility granted by a lender during financial difficulty.
Foreign transaction fee
A fee charged on card purchases made in another currency.
Fraud alert
A notice on your credit file that warns lenders to take extra care.
Fraud dispute
A dispute raised when an account or search is fraudulent.
Fraud marker
A note on your credit file indicating suspected or confirmed fraud activity.
Full and final settlement
An agreement to pay a reduced amount to settle a debt completely.
Full and final settlement letter
A written offer to settle a debt for a reduced lump sum.
G
H
Hard search
A credit check that is visible to lenders and can affect your credit score.
Hard search footprint
A record of a hard credit check made during an application.
Hardship plan
A temporary agreement with a lender to reduce or pause payments.
High Court Enforcement Officer (HCEO)
An enforcement officer who recovers certain higher-value debts.
Hire purchase (HP)
A type of car finance where you pay in instalments and own the car at the end.
Household bills
Regular payments for essentials like rent, utilities, and council tax.
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.
J
Joint account
A credit account shared by two people, such as a joint loan or mortgage.
Joint borrower sole proprietor (JBSP)
A mortgage where two people borrow but only one owns the property.
Joint mortgage
A mortgage taken out by two or more people together.
Judgment in default
A court judgment entered because no response was received to a claim.
K
L
Last reported date
The most recent date a lender sent data to a credit agency.
Late fee
A charge applied when a payment is made after the due date.
Late payment
A payment made after the due date, which can be reported to credit agencies.
Late payment marker
A marker on your credit file showing a payment was made late.
Lender fee
A general fee charged by a lender for setting up credit.
Letter before claim
A formal warning that court action may follow if a debt is not resolved.
Limitation Act
The law that sets time limits for taking legal action on debts.
Limitation period
The time limit for bringing certain debts to court under UK law.
Linked address
An address that appears on your credit file because you have lived there or used it for credit.
Linked address error
A mistake where an incorrect address appears on your credit file.
Loan amount
The total sum you borrow from a lender.
Loan application
The process of applying for a loan and submitting your details for approval.
Loan eligibility
An estimate of how likely you are to be approved for a loan.
Loan origination fee
A fee charged for processing and setting up a loan.
Loan rate
The interest rate applied to a personal or secured loan.
Loan term
The length of time you have to repay a loan.
Loan-to-value (LTV)
A percentage showing how much of a property value is borrowed versus paid as a deposit.
M
Minimum payment
The smallest amount you must pay on a credit account each month.
Missed payment
A payment that is not made on time and is recorded on your credit report.
Missed payment count
The number of missed payments recorded on your credit report.
Mobile contract
A phone plan paid monthly, often with a credit check.
Mobile credit check
A check performed by a mobile provider before approving a contract.
Months in arrears
The number of months a payment has been overdue.
Mortgage
A long-term loan used to buy property, secured against the home.
Mortgage arrears
When you have missed mortgage payments and are behind on your loan.
Mortgage broker
A professional who helps you find and apply for mortgage deals.
Mortgage exit fee
A fee charged when you close a mortgage or switch lenders.
Mortgage offer
A formal document confirming a lender will provide a mortgage on set terms.
Mortgage porting
Moving your existing mortgage deal to a new property.
Mortgage rate
The interest rate you pay on a mortgage loan.
Mortgage stress test
A check to see if you could afford mortgage payments if rates rise.
Mortgage term
The length of time you have to repay your mortgage.
Mortgage underwriting
The lender’s detailed review of your mortgage application.
Mortgage valuation fee
A fee charged for the lender’s property valuation.
N
Name mismatch
A difference in how your name appears across credit records.
Name variation
A difference in how your name appears across credit accounts or reports.
Negative credit
Credit history events that signal missed payments or higher risk.
Net income
Your income after tax, National Insurance, and other deductions.
New credit
Recently opened accounts or recent credit applications on your report.
No credit history
A situation where there is little or no recorded borrowing activity in your credit file.
Non-priority debt
A debt that is important but usually has less immediate consequences than priority debts.
Notice of assignment
A letter telling you that a debt has been sold or transferred.
Notice of correction
A short statement you can add to your credit file to explain a special circumstance.
Notice of enforcement
A formal notice that enforcement action is about to begin.
Notice of sums in arrears
A formal notice that your account is behind on payments.
O
Offset mortgage
A mortgage that links your savings to reduce interest costs.
On-time payment rate
The percentage of payments you have made on time.
Open account
A credit account that is currently active and available for use.
Open banking
A secure way for you to share bank account data with trusted providers through regulated connections.
Open banking consent
Your permission for a provider to access bank data securely.
Order to obtain information
A court order requiring you to provide financial details about your situation.
Overdraft
An agreement with your bank that lets you spend more than the money in your current account.
Overdraft fee
A charge for using an overdraft or going over an agreed limit.
Overdraft interest
Interest charged on the amount you borrow through an overdraft.
Overdraft limit
The maximum amount you can go below zero on your current account.
Overdraft repayment
Paying back money you have borrowed through an overdraft.
Overlimit fee
A fee charged when you exceed your credit limit.
Overpayment
Paying more than the minimum or scheduled amount on a credit account.
Overtime income
Extra earnings from working hours beyond your contracted hours.
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.
Q
R
Refinancing
Replacing an existing loan with a new one, often to change the rate or term.
Remortgage
Switching your mortgage to a new deal, either with your current lender or a new one.
Rent arrears
Unpaid rent that has fallen behind your agreed payment schedule.
Rent guarantor
A person who agrees to pay rent if a tenant cannot.
Rent reporting
The practice of reporting rent payments to credit agencies so they count toward your credit history.
Repayment mortgage
A mortgage where you repay both interest and the original balance each month.
Repayment term
The length of time you have to repay a loan or credit agreement.
Reporting cycle
The schedule a lender uses to send account updates to credit agencies.
Reporting date
The date a lender submits your account data to a credit agency.
Reporting lag
The delay between account activity and when it appears on your credit report.
Repossession
When a lender takes back an asset after missed payments on a secured loan.
Representative APR
The APR that at least 51% of accepted applicants are expected to receive.
Representative example
A standard example used in ads to show typical credit costs.
Response pack
The set of forms included with a court claim that lets you respond.
Returned payment fee
A fee charged when a payment fails due to insufficient funds.
Revolving credit
Credit that can be reused as you repay, such as credit cards and overdrafts.
Rewards card
A credit card that offers points, miles, or other rewards for spending.
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.
T
Term length
The total duration of a loan or credit agreement.
Thin credit file
A credit file with limited information about borrowing or repayment history.
Third-party debt order
A court order that takes money directly from your bank account.
Time to pay order
A court order that sets affordable repayment terms for a debt.
Token payment
A small, temporary payment made when you cannot afford the full amount.
Top-up loan
An additional loan amount added to an existing loan or mortgage.
Total cost of credit
The total amount you repay, including interest and fees.
Tracker mortgage
A mortgage where the rate follows a base rate plus a set margin.
TransUnion
A major UK credit reference agency with its own credit report and score range.
Trust deed
A formal debt solution used in Scotland to repay part of what you owe.
TV licence
A required licence in the UK for watching live TV or BBC iPlayer.
TV licence arrears
Unpaid TV licence fees that are overdue.
U
Unarranged overdraft
Going overdrawn without an agreed overdraft limit.
Unsatisfied CCJ
A CCJ that has not been paid in full.
Unsecured debt
Debt that is not backed by an asset or collateral.
Unsecured loan
A loan that is not backed by an asset or collateral.
Utilisation per card
How much of each individual credit limit you are using.
Utilisation percentage
The share of your available credit that you are using.
Utilisation threshold
A level of credit usage where scores may begin to drop.
Utilities reporting
When utility providers report payment data to credit agencies.
Utility arrears
Unpaid bills for utilities such as gas, electricity, or water.
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Variable income
Income that changes from month to month, such as overtime or commissions.
Variable rate
An interest rate that can change over time based on market conditions or lender decisions.
Verification failure
When an identity or address check does not match your records.
Vulnerability flag
A marker that tells creditors you may need extra support due to vulnerability.
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