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Credit: It is the money borrowed which an individual uses to purchase a commodity or start a business. Here the lender is the creditor and the borrower is the debtor. Whenever you get a credit from somebody, it automatically implies that the second party agrees to pay back at an agreed time.

Credit Report: It is a statement which keeps the record of public records, inquiries, personal and credit details of a person. This report is usually prepared by each of the three Credit Reporting Agencies – Equifax, Transunion, and Experian.

Consumer Debt: It is kind of credit incurred which is presently outstanding and is used to fund all consumable goods. The most common form of consumer debts are credit card debt, consumer finance, pay day loans.
Collection Agency: A firm that collects unpaid bills for other firms and is usually compensated by receiving a percentage of the amount collected.Credit Repair: It is the process of improving the financial reputation of a person among creditors. Through credit repair services one can access their credit report, monitor their credit status and interact with the credit bureaus to improve their credit scores.

Credit Score: It is a 3 digit number which is generated on the basis of an individual‘s credit report. The lenders usually take these scores into account to predict the potentiality of the borrower. This score was formulated by Fair Isaac and Company, and so it is popularly known as the FICO score.

Credit History: It is a record of how a person or company has borrowed and repaid his debts. It also carries the information about late payments, missed payments and other credit details.

Credit Scoring Model: These models are developed by taking into account factors related to the creditworthiness of a person. The credit scoring is used by lenders, landlords, insurer’s employers, utility companies and sometimes even judges to evaluate the credit behavior of a person.

Creditworthiness: This acts as a yardstick for a creditor to judge a person’s or a company’s potentiality to pay back the incurring debts.