The world of credit can be a very confusing place, and we credit-types tend to speak in acronyms. Many of the terms and these acronyms can sound alike, which only adds to the confusion. In my world, the world of credit reporting and credit scoring, using the wrong word, letter, phrase or acronym can turn a seemingly innocent concept into an inaccuracy.
I’ve been having a running conversation about credit scores with my father for some 25 years now. He just cannot understand how having a perfect payment history doesn’t equate to a perfect credit score. I get it. Conversely, he cannot understand how having credit card debt, even when paid on time, can lead to a lower score.
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