Credit Related Terms To Know


For as important as a good credit report can be for one’s financial health, the credit reporting process and all that it entails can seem mystifying and intimidating. However, it does not have to be. Understanding the meaning of a few important terms can go a long way towards being the master of one’s credit report.

  1. Open or current accounts – These accounts are in good standing and are being paid as agreed.
  2. Charge Off-Per Experian, a charge occurs when the credit grantor writes off the amount owed as a loss and closes the account. It does not mean that the debt is not still owed and that future attempts may not be made to collect the debt. In fact, the debt may be sold to a third party agency for collection. This new company attempting to collect may begin to report on your credit once they have purchased the delinquent account. Charge off remains on credit report for seven (7) years. Source:
  3. Payment after charge off – This indicates that the account was paid after the creditor charged off the account. Please keep in mind that paying the account after charge off does not mean that the charge off notation is removed. These remarks will remain on your credit report for seven (7) years.
  4. Closed Account – The closed account notation is used to indicate that a revolving account such as credit card is no longer active or open for new charges. Closed accounts remain on your report for ten (10) years from the date closed if no late payment. If negative payment information, then it remains on your credit report seven (7) years from the original delinquency date. Source:
  5. Paid in Full – “Paid in Full” is similar to the closed account notation indicated above. The only distinction is that paid in full is used for installment accounts, such as auto loans. Source:

Like the closed account notation, paid in full remains on your credit history ten (10) years from the date the account was paid off if there were no late payment or seven (7) from the delinquency dates.

For more information about the fair credit reporting act, please visit our website here.

Loan Lawyers has helped over 5,000 South Florida homeowners and consumers with their debt problems, we have saved over 1,800 homes from foreclosure, eliminated $100,000,000 in mortgage principal and consumer debt, and have collected millions of dollars on behalf of our clients due to bank, loan servicer, and debt collector violations, negligence and fraud. Contact us for a free consultation to see how we may be able to help you.