Credit Cards · Tools · Glossary · B-terms · Bust-out fraud

Credit Card Glossary: Terms and Definitions

Confused by credit card terms? CreditCards.com's glossary of credit card definitions will help. From account holder to Regulation Z, we have defined the most-common and most-confusing credit card terms.


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Bust-out fraud

Bust-out is a form of fraud that usually involves credit cards. The scheme begins when a person establishes good credit, either under their own name or by identity theft using stolen Social Security numbers. The fraudster then behaves well for a period of time, making on-time payments, building credit, and applying for more cards and higher credit limits. After credit is built, the "bust-out" takes place. The fraudster maxes out all the credit accounts and ceases making payments.