... / 90 Day Blueprint... / Glossary of Terms

A–C

APR (Annual Percentage Rate):
The total cost of borrowing money, shown as a yearly percentage. It includes interest and fees.

Authorized User:
Someone added to another person’s credit card. Their credit can benefit from the account’s good payment history—even if they don’t use the card.

Business Credit Report:
A credit file tied to your business’s name and EIN (not your personal SSN). Maintained by agencies like Dun & Bradstreet, Experian Business, and Equifax Business.

Charge-Off:
A debt the lender gave up on collecting. Still hurts your credit and can be sold to collections.

Collection Account:
Unpaid debt sent to a collection agency. These accounts damage your credit until resolved or removed.

Credit Builder Loan:
A loan designed to help you build credit. You pay monthly into a locked account and get the money after it’s fully paid off.

Credit Bureau (or Credit Reporting Agency):
A company that tracks your credit activity and creates your credit reports. The big three are Experian, Equifax, and TransUnion.

Credit Limit:
The maximum amount you can borrow on a credit card or line of credit.

Credit Mix:
A factor in your credit score that looks at the variety of credit types you use (credit cards, loans, etc.).

Credit Report:
A record of your borrowing history, including loans, credit cards, payments, and defaults.

Credit Score:
A number that represents your credit risk. Scores range from 300 to 850 for FICO; business credit scores often range from 0 to 100 or 0 to 300.

D–F

Debt-to-Income Ratio (DTI):
Your total monthly debt payments divided by your monthly income. Lenders use this to decide if you can afford more debt.

Delinquent Account:
An account that’s past due but not yet in collections. The longer it’s unpaid, the more it hurts your score.

Dispute:
A formal challenge to remove an error from your credit report.

EIN (Employer Identification Number):
A business’s version of a Social Security number, issued by the IRS. Needed to build business credit.

Experian Boost:
A free tool that lets you add on-time utility, rent, and phone payments to your Experian credit file.

G–L

Guarantor (or Personal Guarantee):
Someone (often you, the founder) who promises to repay a business debt if the business can't.

Hard Inquiry (or Hard Pull):
A detailed credit check by a lender. Can slightly lower your score, especially if many happen at once.

Installment Loan:
A loan with fixed monthly payments—like a car loan or credit builder loan.

Interest:
The extra money you pay to borrow. Usually a percentage of the original amount.

Intro APR Offer:
A credit card perk offering 0 % interest for a limited time on purchases or balance transfers.

Late Payment:
A payment made after the due date. If it’s 30+ days late, it shows up on your credit report.

Line of Credit (LOC):
A flexible loan where you borrow as needed up to a limit. You only pay interest on what you use.

M–R

Minimum Payment:
The smallest amount you can pay on a credit card without getting hit with a late fee.

Net-30 Account:
A vendor account where payment is due 30 days after delivery. Many report to business credit bureaus.

Payment History:
The biggest factor in most credit scores. A record of whether you pay on time.

Pre-Qualification (or Pre-Approval):
An estimate from a lender of what you might qualify for, often based on a soft credit pull.

Primary Account Holder:
The person legally responsible for a credit account. Authorized users are not legally responsible.

Revolving Credit:
Credit that you can use, pay off, and reuse—like a credit card or business line of credit.

Risk Tier:
A credit band lenders use to decide interest rates and approvals. Typical tiers are:

• Excellent: 750+
• Good: 700–749
• Fair: 640–699
• Poor: below 640

S–Z

SBSS (Small Business Scoring Service):
A business credit score used by the SBA to evaluate loan applicants. Combines personal and business credit history.

Secured Card or Loan:
Requires a cash deposit or collateral. Easier to get when credit is limited or damaged.

Soft Inquiry (or Soft Pull):
A credit check that doesn’t hurt your score. Used for pre-approvals or personal reviews.

Statement Closing Date:
The day your credit card company totals your charges for the month. Balances on this date are reported to the credit bureaus.

Trade Line (or Tradeline):
Any account that appears on your credit report, including loans, credit cards, or vendor accounts.

Utilization Ratio (or Credit Utilization):
How much of your credit limit you’re using. Stay under 30 %—ideally under 10 %—to improve your score.

Vendor Credit:
A type of trade credit where a supplier lets your business buy now and pay later (Net-30, Net-60, etc.).