Key Terms on Your Credit Report

Why this matters

Credit reports use specific industry terminology that is rarely explained. Without understanding what these terms mean, you cannot fully understand your report.

This page defines the most important terms in plain language. For a more comprehensive list, see our Glossary.

Date terms

These terms all involve dates, and they are commonly confused.

Date Opened

The date the account was first opened with the original creditor.

For original creditor accounts (your credit card with Bank of America, your auto loan with Toyota Financial), this is straightforward.

For debt buyer accounts (a collector that bought your old debt), the "date opened" field can be misleading. It is sometimes the date the debt buyer acquired the debt, not the date you originally opened the account. Always verify with the original creditor's records or your own records.

Date Reported / Date Last Reported

The most recent date the lender or collector sent updated information about this account to the credit bureau. This date updates regularly and does not affect when the account falls off.

Date of Last Activity

The most recent date there was activity on the account. For an open account in good standing, this might be your most recent payment date. For a collection, this might be the most recent contact attempt by the collector.

This date can be misleading. A collector contacting you about an old debt does not reset the seven-year reporting clock or the statute of limitations on the underlying debt. The "date of last activity" can change without affecting the actual age of the account.

Date of Status

The date the current status of the account was assigned. If an account went to charge-off in March 2022, the "date of status" reflects that.

Date of First Delinquency (DoFD)

The most important date on a derogatory account. This is the date you first became delinquent on the account and never brought it current again.

The seven-year credit reporting clock runs from this date. The DoFD does not change when the debt is sold or transferred.

If a credit report shows a DoFD that does not match your records, that is a basis for a dispute.

Scheduled / Estimated Removal Date

Some bureaus calculate and display this date directly. It is supposed to be seven years from the DoFD.

If a bureau is showing a removal date that is more than seven years from the actual DoFD, that is a re-aging violation.

Account status terms

Open

The account is currently active. You can still use it (for credit cards) or you are still making payments on it (for loans).

Closed

The account has been closed, either by you or by the lender. Closed accounts in good standing continue to appear on your report for 10 years and contribute positively to your credit history.

Current / Pays as Agreed

You are paying the account on time according to the terms.

Past Due

You are behind on payments. The amount past due is usually shown.

30 / 60 / 90 / 120 Days Late

You missed payments. These are reported as 30-day, 60-day, 90-day, or 120-day delinquencies depending on how far behind you are.

Charge-Off

The original creditor has written off the debt as a loss for accounting purposes. The debt is still legally owed and may still be sold to debt buyers.

A charge-off is a serious negative item that significantly hurts your credit score.

Collection

The account has been turned over to a collection agency or sold to a debt buyer. The collector is now trying to collect.

A collection account that comes from a charge-off is sometimes shown as a separate entry from the charge-off itself, even though both refer to the same underlying debt.

Settled / Settled for Less Than Full Balance

The debt was resolved for less than the full amount owed. This is better for your credit than an unpaid charge-off but worse than paid in full.

The "settled for less than full balance" notation can affect your ability to get credit in the future, as some lenders view it negatively.

Paid

The account has been paid in full and is closed.

Paid Charge-Off / Paid Collection

A previously charged-off account or collection account that has been paid. The account remains on your report until seven years from the original DoFD, but the status changes to indicate it has been paid.

For older FICO scoring models (FICO 8, which most lenders still use), paid collections still affect your score, just less than unpaid ones. For newer scoring models (FICO 9, FICO 10), paid collections are treated more favorably.

Account types

Revolving

Credit cards and lines of credit. You can borrow up to a limit, pay down the balance, and borrow again.

Installment

Loans with fixed monthly payments and a defined end date. Auto loans, personal loans, mortgages, and student loans are installment accounts.

Mortgage

Home loans. These are technically a type of installment loan but are usually shown separately.

Open

Accounts that must be paid in full each month, like American Express charge cards (not their regular credit cards).

Important other terms

Original Creditor

The company you originally borrowed from or had an account with. Bank of America, Capital One, Verizon, your hospital - whoever first extended credit to you.

Current Owner / Furnisher

The company that currently owns the debt and is reporting it to the credit bureau. For original creditor accounts, this is the same as the original creditor. For collection accounts, it is the collection agency or debt buyer.

Debt Buyer

A company that purchases delinquent debts from original creditors at a steep discount, then attempts to collect the full amount. Companies like Portfolio Recovery Associates, Midland Credit Management, and LVNV Funding are large debt buyers.

A debt may pass through multiple debt buyers, each attempting to collect or selling to another buyer.

Furnisher

In credit reporting law, the company that "furnishes" information to the credit bureaus. This includes lenders, collection agencies, and debt buyers.

Under FCRA, furnishers have specific obligations to report accurate information. When you dispute an account, the bureau contacts the furnisher to verify the information.

Authorized User

Someone who is allowed to use a credit account but is not the primary account holder. Authorized user accounts appear on both the primary holder's report and the authorized user's report.

Joint Account

An account where two people are equally responsible for the debt. Both parties are listed on the credit report.

Co-signer

Someone who agreed to be responsible for a debt if the primary borrower defaults. Co-signed accounts appear on both people's credit reports.

Hard Inquiry

A credit check pulled when you apply for credit. Hard inquiries affect your credit score, though usually only slightly. They appear on your report for two years and stop affecting your score after one year.

Soft Inquiry

A credit check that does not affect your score. Self-pulls of your own report, employer background checks (with your permission), and prescreened offers are soft inquiries. Soft inquiries are visible only to you, not to lenders.

More terms

For a comprehensive list of credit reporting and debt collection terminology, see our full Glossary.