- An individual or entity who poses little credit risk to a lender. Having good credit tells a lender that one is likely to make payments on time and that the risk of defaulting on a loan is small. Those with good credit are more likely to be approved for credit than those with average or bad credit. An individual with good credit will have a high credit score whereas an individual with bad credit will have a low credit score.
good credit history
Related Terms and Acronyms
- Bad Credit — Definition,
- Someone who carries a higher credit risk.
- Bad Credit Loan — Definition,
- A loan taken out by someone with bad credit.
- Collection — Definition,
- The efforts used to bring an overdue mortgage, or other debt current, and the filing of necessary notices to proceed with foreclosure when necessary.
- Credit Bureau (CB) — Acronym, Very Important,
➥ Company that determines one's credit worthiness.
- A company that collects and sells information about how people handle credit. It issues credit reports that list how individuals manage their debts and make payments, how much untapped credit they have available and whether they have applied for any loans. The reports are made available to individuals and to creditors who profess to have a legitimate need for the information.
- Credit Reporting Agency (CRA) — Acronym,
- An organization that prepares reports that are used by lenders to determine a potential borrower's credit history. The agency obtains data for these reports from a credit repository as well as from other sources.
- Credit Score — Definition,
- Also referred to as a 'Beacon Score' is a number, between 300 and 900, that reflects a person's credit history. Lenders calculate this number using a computer system as part of the process for assigning rates and terms to the loans they grant.
- Credit Worthiness — Definition,
- How likely an individual or entity is to default on their debt.
- Default — Definition,
- When a borrower fails to fulfill the obligations of a loan or lease.
- Delinquency — Definition,
- Failure to make mortgage payments when mortgage payments are due.
- Equifax (EF) — Company Est. 1899, Canada, Important,
- A major credit bureau company in Canada along with Trans Union.
- Experian (XP) — Company, Canada,
- One of the Big Three credit bureaus, along with Equifax and Trans Union, Experian not normally used in Canada.
- Foreclosure — Definition,
- The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt.
- No Credit History — Definition,
- To have no record of an individual's credit worthiness.
- TransUnion (TU) — Acronym,
➥ See TransUnion Canada.
- One of the major Canadian credit bureau companies along with Equifax.