Understanding Credit Reports and Bankruptcy

A set of vocabulary flashcards covering key concepts related to credit reports and bankruptcy.

Credit Report

A document that contains information about where you live, how you pay your bills, and any bankruptcies or lawsuits.

Payment History

Accounts for 35% of your credit score, reflecting how consistently you pay your bills.

Amount Owed

Represents 30% of your credit score, measuring how much debt you currently have.

Length of Credit History

Accounts for 15% of your credit score, indicating how long your credit accounts have been active.

New Credit

Makes up 10% of your credit score, including the number of recently opened accounts.

Types of Credit Used

Also accounts for 10% of your credit score, reflecting the variety of credit lines you hold.

Declaring Bankruptcy

A legal process for individuals who cannot repay their debts, evaluated by a court.

Assets Seized

Property that may be taken during bankruptcy proceedings to pay back lenders.

Cleared Debt

Once bankruptcy is completed, your debt is wiped from your record, allowing you to rebuild credit.

Credit Score Impact

Bankruptcy affects your credit score for ten years, making it difficult to obtain new credit.

Public Record

All bankruptcy filings are recorded publicly, impacting future borrowing opportunities.