CREDIT AUTHORIZATION LETTER >> A letter signed by the borrower that authorizes a lender, to conduct a credit investigation.

CREDIT BUREAU >> A company that collects and organizes information about an individual’s credit and payment habits. The 3 national credit bureaus are Experian, TransUnion and Equifax.

CREDIT DENIAL LETTER >> A letter that is sent to a credit applicant advising him or her that the application has been denied and the reason for the denial.

CREDIT DEPTH >> The number of years a borrower has established credit. This information shows up on the borrower’s report.

CREDIT HISTORY >> The history of whether the borrower has met financial obligations on time in the past.

CREDIT LENGTH >> The length of time a customer has had established credit.

CREDIT SCORE >> A numerical assessment assigned to the customer by credit bureaus that represents a measurement of the customer’s overall credit rating. The scores are weighted and range from approximately 365 to 840. Low scores reflect a “high risk”, while higher scores reflect a “lower risk”. Each credit bureau has its own credit score system.