|
Common Credit Terms From A-Z
A B
C D
E F
G H
I J K
L M N O
P Q R
S T
U V W X Y Z
A
Annual Fees - A fee charged by credit
card grantors for use of their credit cards.
Annual Percentage Rate - What credit
cost at a yearly rate.
Applicant - The person or organization
that is applying for credit.
Asset - property that you own that has
value.
B
Balloon Payment - It is the payment at
the end of the loan that is much larger than the regular scheduled payments.
Bankruptcy- A proceeding that takes
place in Federal Court, that may legally release a person from repaying
debts owed. There are several forms of bankruptcy:
1. Chapter 7- The total liquidation of a persons assets
2. Chapter 11- Used for business reorganization
3. Chapter 13- wage owner repayment plan that allows the debtor to satisfy
some of the debt
Budget – A plan to set aside money for
monthly expenses.
C
Cash Advance- method of securing a cash
loan from your credit card. Higher interest rates normally apply and terms
of repayment varies.
Charge Card- A credit card that requires
payment in full monthly.
Charge Off - an account where the
creditor expects to receive no payment for the debt.
Collection Account- an account that is
past due and has been sent to an outside collection agency or in-house
collection department to collect the funds from the debtor.
Consolidation Loan – a loan secured to combine all debts, so the person can
have one monthly payment. This monthly payment is usually lower than
separate monthly payments.
Collateral- property a person puts up so
they can secure a loan or credit account.
Consumer Credit – an agency that helps
consumers find ways to repay their debts.
Credit Counseling- advice given by
credit professionals that help consumers find ways to repay their debts.
Credit History- a record of a consumers
credit, it shows how they are currently paying debts and how they have paid
them in the past.
Credit Limit- an amount a credit card
company sets for a consumer to spend.
Credit Report- it is a summary of a
consumers recent credit activity and also includes information on loans,
marital status and age.
Credit Score – numerical number used to
summarize a consumers credit history and predicts how they will pay off
credit in the future.
D
Deferred Payment- a payment that is put off to be paid at a later date.
Debit Card- a card that deducts directly
from a consumers bank account.
Delinquent- when a consumer fails to
deliver a promised payment, credit companies report at 30, 60, 90, 120 days
past due.
E
Equifax- A credit reporting agency.
Experian – A credit reporting agency.
F
Finance Charge- a dollar amount paid to
get credit.
Foreclosures- it is a legal action that
terminates all ownership rights in a home. This happens when a home owner
fails to make payments to the mortgage company.
G
Garnishment- a legal action where a
credit company is able to take part of a debtors wages or property to pay
off a debt.
Grace Period- a period of time where a
consumer can make a payment to avoid finance charges.
H
Home Equity Loan- a loan taken based on
the difference you own on your home and the present market value of the
home.
I
Inquiry- these are requests made to
obtain information about your personal credit history and credit score.
These are often used by potential credit grantors to check a consumers
credit worthiness.
Interest- The cost of borrowing or
lending money. It is usually based on the percentage of the amount loaned or
borrowed.
Installment Account- a loan where the
consumer agrees to make fixed payments over a period of time
J
Joint Account- this is a credit account
held my more than one person. Both are equally responsible for the credit
account or loan.
Judgment- An official court decision of
an action against you or suit. This record may be listed on your personal
credit report in matters of money and debts owed.
L
Late Payment- a payment made toward a
credit account that is past the scheduled date the payment is due.
Lien- a legal claim or hold of a persons
property as security for a debt.
Line of Credit- a preauthorized amount
of credit that is offered to a consumer that is commonly secured against an
asset such as a home or other tangible property.
M
Mortgage- a conveyance of an interest in
property as security for the repayment of money borrowed.
P
Past Due - a payment that has not been
paid at the scheduled time.
Personal Loan – a loan that is based on
your income, debt and credit history.
Principle – the outstanding balance
owned on a loan not including interest or other fees.
Public Record - a record that is open
for anyone that requests them. This information can be obtained from a
credit agency that shows a persons liens, judgements and credit history.
R
Repossession – a voluntary or forced
surrender of merchandise that a consumer has failed to pay for. Autos and
other big ticket items are the most common items to be repossessed.
Revolving Credit Account – this is an
account that requires a monthly scheduled payment. As the credit amount
decreases the amount of interest and other fees are reduced based on the
balance owed on the account.
S
Secured Credit Card – a credit card that
is issued to a consumer that is tied to their savings account. The amount in
the savings account is used to determine the amount of credit available for
a person to use. These are often easier to obtain than a traditional credit
card.
T
Tax Lien – a lien placed on a person
that owes back taxes.
Trans Union – a major credit reporting
agency
U
Unsecured Loan - a loan that is issued
solely on a persons promise to pay the loan back on time.
|
