Being familiar with the terms used in the credit industry can help a great deal in understanding your credit standing. Below are several terms and their corresponding definitions that can further improve a person’s understanding of the credit industry. Apart from this, consult a Texas credit attorney or credit counselor for further details.

I9, O9, R9 – the common number in these 3 terms is 9. Having the number 9 beside these types of accounts signifies that the account is already written off or charged off. Having one of these terms on a credit report is enough to lower down the credit score since a charged off account is basically considered a loss on the part of the creditor. Once a charge off account appears in the credit report, it will still remain for 7 years even after payment has been made.

• Credit Limit – the biggest amount available for charging or spending. If you have a high credit score, chances are that your credit limit is also high. But this does not necessarily mean that you have to reach the maximum limit when spending.

• Bankruptcy Score – a score that determines whether or not you will be filing for bankruptcy and even how much can be lost when you file for one.

• Application Score – a score that is taken from the personal information given via the credit application. All boxes are required to have an answer since application scores detest having blanks in the application.