Identity Theft & Credit Monitoring Glossary
Identity Theft & Credit Monitoring Terms & Definitions
25 terms defined — an authoritative reference for understanding the most important concepts in Identity Theft & Credit Monitoring.
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Charge-Off
A charge-off happens when a lender decides a debt is unlikely to be repaid, usually after about 180 days of missed payments, and writes it off as a loss. You still owe the debt, and the charge-off is a serious negative mark that can remain on your report for about seven years. The debt may also be sold to a collector.
Child Identity Theft
Child identity theft is the misuse of a minor's Social Security number to open accounts or commit fraud. It often goes undetected for years because parents rarely check a child's credit. A child usually should not have a credit file at all, so the existence of one can be a warning sign worth investigating.
Collections Account
A collections account appears when an unpaid debt is sent or sold to a debt collector. It is a negative mark that can stay on your report for about seven years from the original delinquency. Paid medical collections and small balances are treated more leniently by newer scoring models, but collections can still hurt.
Credit Dispute
A credit dispute is a formal request asking a credit bureau to correct or remove inaccurate information on your report. Under the Fair Credit Reporting Act, the bureau generally must investigate, usually within about 30 days, and fix or delete anything it cannot verify. You can dispute directly with the bureaus for free.
Credit Freeze (Security Freeze)
A credit freeze, or security freeze, restricts access to your credit report so new lenders cannot pull it, which blocks most new-account fraud. It is free to place and lift at each of the three bureaus, does not affect your credit score, and you temporarily lift it when you want to apply for credit.
Credit Lock
A credit lock lets you quickly block and unblock access to your credit report, usually through an app, and works much like a freeze for stopping new-account fraud. The key differences are that a lock is often a paid feature governed by a service agreement, while a security freeze is free and backed by law.
Credit Mix
Credit mix refers to the variety of credit types you manage, such as revolving accounts like credit cards and installment loans like auto or student loans. It is a smaller scoring factor, but a healthy mix can help. You should never take on debt you do not need just to diversify your credit mix.
Credit Report
A credit report is a detailed record of your credit history compiled by a credit bureau, including your accounts, balances, payment history, inquiries, and public records. Lenders use it to decide whether to extend credit. You are entitled to free copies from each bureau, and reviewing them helps you catch errors and fraud.
Credit Utilization Ratio
Credit utilization is the percentage of your available revolving credit that you are using, calculated per card and across all cards. Lower is generally better for your score, and many people aim to keep it well below 30 percent. Paying balances down before the statement closes can lower the figure that gets reported.
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FICO Score
A FICO score is the credit score most lenders use, ranging from 300 to 850 and built from your credit report data. It weighs payment history and amounts owed most heavily, followed by length of history, new credit, and credit mix. There are several FICO versions, so the number can vary by lender and bureau.
Fraud Alert
A fraud alert is a free notice you add to your credit file asking lenders to take extra steps to verify your identity before opening credit. A basic alert lasts one year and can be renewed, while an extended alert is available to confirmed identity-theft victims. Unlike a freeze, it does not block access to your report.
Free Annual Credit Report
You are entitled to free copies of your credit report from each of the three major bureaus through the official government-authorized source, AnnualCreditReport.com. Reviewing them regularly is one of the best free ways to catch errors and early signs of fraud. A credit report shows your history but does not include a credit score.
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Secured Credit Card
A secured credit card requires a refundable cash deposit that usually sets your credit limit, which lowers the lender's risk and makes approval easier for people building or rebuilding credit. Used responsibly and paid on time, it can help establish positive history, and many issuers later offer an upgrade to an unsecured card.
Soft Inquiry (Soft Pull)
A soft inquiry, or soft pull, is a credit check that does not affect your score, such as checking your own credit, a prequalified offer, or an employer background check. Credit monitoring services use soft pulls, so watching your own credit as often as you like never lowers your score.
SSN Monitoring
SSN monitoring watches for signs that your Social Security number is being used or traded, such as new names, addresses, or accounts linked to it, or its appearance in dark web data. It cannot stop misuse on its own, but early alerts let you act quickly by freezing credit and reporting suspected theft.
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The Three Credit Bureaus
The three major credit bureaus are Equifax, Experian, and TransUnion. Each collects credit information independently, so your report and score can differ from one bureau to another. Because a lender may check any of the three, tri-bureau monitoring watches all of them rather than just one.
Tradeline
A tradeline is any account listed on your credit report, such as a credit card, auto loan, mortgage, or student loan. Each tradeline shows the balance, credit limit, payment history, and account status. Lenders and scoring models read your tradelines to judge how you manage credit over time.