Scores help businesses make decisions such as whether to accept or decline the application.
Bankruptcy A proceeding in U.S. Bankruptcy Court that may legally release a person from repaying debts owed. Credit reports normally include bankruptcies for up to 10 years. The balance on a credit obligation that a lender no longer expects to be repaid and writes off as a bad debt. Collection Attempted recovery of a past-due credit obligation by a collection department or agency. A credit bureau record on a given individual.