Credit Report Terminology: Part Two: 8 Account Types



When you get your credit report, you might not understand why you scores are how they are. The report breaks down your credit history but might have terms on it you don’t recognize. Don’t worry, we defined them for you so you can become a credit report reading expert...

1. Open Account – This means the account is available to be used.

2. Trade Line – This is a word that can be used to represent any account. A trade line is one of your lines of credit, either revolving or installment.

3. Closed Account – This means the account is not available to be used. This can be because it has been paid off, such as a car loan, or it was closed due to lack of use or lack of payments. If a closed account has a balance, although unable to be used, the balance still requires being paid.

4. Revolving Account – This is a term for a credit card, as long as the balance does not hit the credit limit and is being paid on time, it can be used again and again.

5. Installment Account – This is a term for a loan that has a set payment with months to pay it off, such as a car loan, mortgage, school loans.

6. Individual Account – If an account is listed as individual account, the account was open in your name and you are the sole owner of the account and responsible for all payments and balances.

7. Joint Account – A joint account is shared between two or more individuals – usually couples or business partners. Anyone with a name on the account can access the funds it in, this account impacts all parties credit scores.

8. Authorized User – If an account is listed as authorized user, this means you are not the original owner of the account. Often married couples list their significant other or parents can list their children as authorized users to an account. When listed as an authorized user, you have permission to use the account but you are technically not responsible for paying the bill. That being said, the accounts balance, payments, ect. still impact the authorized user’s credit score.

9. Self Reported: Self reported is a newer term, it comes from the credit report boosts that allow individuals to show their positive pay history with their utilities, rent, ect.

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