An adjustable rate mortgage (ARM) is a home loan where the interest rate is adjusted based on an index. Payments made by the borrower may change over time with the changing interest rate. Adjustable rates transfer part of the interest rate risk from the lender to the borrower. They can be used where unpredictable interest rates make fixed rate loans difficult to obtain. The borrower benefits if the interest rate falls and loses out if interest rates rise.
An alternative mortgage is any loan that is not a standard fixed rate mortgage.
An alias is a note on your credit report that describes other names you may have used on your financial accounts. Maiden names or changes in the way your name is spelled or your complete name may be indicated in an alias description.
Paying a debt using a scheduled payment plan.
A charge which is often required by companies offering credit (credit card companies) for the use of an account. The annual fee is usually under $50 per year. This fee is sometimes associated with credit cards issued to subprime borrowers or reward cards.
Annual Percentage Rate (APR) is a method of expressing the interest rate that a borrower will pay on credit debt. APR is expressed as a yearly rate. Credit cards may have different APR depending on the transaction. As an example a cash advance on a credit card could have a different APR from that imposed on a balance transfer.
A fee charged to process an application for a loan, or for the issuance of credit. Loan application fees are charged to cover some of the costs involved in processing the application, including credit checks and administrative costs.
Application scoring is a method of identifying the qualification of the credit applicant. Using statistical modeling credit card companies evaluate applicants to determine if the request will be approved or denied. Income and employment are among the criteria used to determine credit risk.
The fee charged to determine the value of an item such as a car or a home. The fee charged by professional appraisers is usually under $500.
A professional opinion as to the value of property such as a home or a car. When appraising homes considerations include the condition of the property, sale price of homes in the area, and size of the property.
An item which is owned by an individual and has monetary value is considered an asset. This could include items such as a car, home or jewelry.
The authorized user is a person that has permission to use your credit card. The account may not be under the name of the authorized user. The account holder will be responsible for the debt. Authorized users may have information of the issued card on their credit report.
This is the ratio of what proportion your monthly income is used for paying debts. The formula is:
Back End Ratio = Total Monthly Debt Expense/Gross Monthly Income X 100
This is also known as the debt to income ratio. Usually credit is not extended to those with a ratio greater than 36% although exceptions are made.
When the balance of one credit card is transferred to another credit card at a lower annual percentage rate.
A balloon payment is a loan which does not completely amortize during the term of the note. At the end of the loan there is a balance due which will need to be paid or refinanced.
A legal preceding that occurs when a person is unable to pay creditors. The process releases the debtor from certain but not all debt obligations. Bankruptcy affects your credit for 7 to 10 years and should be considered as a last resort.
Beacon score was developed by Equifax and is used to determine the probability that an account will become delinquent within 2 years. Beacon Scores range from 300 to 850, with a higher score meaning there is less risk.
A mortgage where payments are scheduled every 2 weeks rather than once per month. This results in a loan being paid off sooner.
The amount paid to a mortgage broker for acting as a middle man between the borrower and the lender. The premium originates from a discounted loan that is marked up by the broker, then sold to the purchaser.
The person asking for credit or a loan, as well as the person that is responsible to repay the loan.
The person that has been issued credit. The cardholder may also authorize users of the card.
A method of getting cash from your credit card. Special interest rates are imposed when a cash advance has been issued. A cash advance from a credit card may be obtained from most ATM machines.
A mortgage against existing property where the borrowed amount is greater than the amount of the previous mortgage. This difference is paid to the borrower in cash at the end of the loan period.
Chapter 7 bankruptcy is often called "liquidation" bankruptcy. The bankruptcy court may liquidate (sell) some of your property for the benefit of your creditors. Chapter 7 is the chapter of the federal Bankruptcy Code that contains the bankruptcy law.
Chapter 12 is designed for "family farmers" or "family fishermen" with "regular annual income." It enables financially distressed family farmers and fishermen to propose and carry out a plan to repay all or part of their debts. Under chapter 12, debtors propose a repayment plan to make installments to creditors over three to five years.
A chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years.
A debt that is deemed uncollectible by the reporting firm and is subsequently written off. This debt is often sold to a collection agency. Charge off occurrences stay on your credit report for 7 years. A charge off is also called ?bad debt?.
ChexSystems is a check verification service. Most credit reporting agencies broker data about how a consumer handles credit relationships, ChexSystems provides data related to consumer banking history and records information such as bad checks.
Fees that are charges when transferring property from one owner to another. Lender, title and escrow fees are considered a part of closing fees.
A guarantee (usually an asset) pledged for the repayment of a loan if one cannot obtain the funds needed to repay a debt.
A collection is the pursuit of a payment on a debt owed by an individual or business. A collection agency operates as the agent of a creditor and collect debts for a fee or percentage of the total amount owed. Collection agencies purchase debts from creditors for a fraction of the value of the debt and pursue the debtor for the full amount. of the debt is then written off as a loss.
The loan-to-value (LTV) ratio is an equation which expresses the amount of a first mortgage as a percentage of the total appraised property value.
Loan to value is one of the key factors that lenders review when qualifying a borrower for a mortgage. Default is key to the lending decisions, and the likelihood of a lender absorbing a loss in case of a foreclosure increases as the amount of equity decreases.. Lenders may require borrowers of high LTV loans to buy mortgage insurance to protect the lender.
A fee lender charges a borrower for unused credit or credit that has been promised at a future date. Many lenders do not charge this fee.
A conventional mortgage under $203,150 that conforms to the loan amounts and mortgage guidelines used by Fannie Mae and/or Freddie Mac
A person who signs his or her name to a loan agreement, lease or credit application. If the primary debtor does not pay, the cosigner is fully responsible for the loan
Convenience checks are a companion to debt consolidation and balance transfer promotions, and may be distributed to new or existing cardholders. These checks have different interest charges than those provided by credit cards.
A convertible Adjustable Rate Mortgage is a type of loan that has the option to convert to a fixed-rate. A borrower is usually required to pay fees to change from a convertible ARM mortgage to a fixed-rate loan, and the conversion can only happen during a specific period of time.
A credit bureau gathers information about how consumers use credit. Information is collected from as many consumer financial transactions or inquiries as can be obtained. This information is sold to anyone who can legally use the material.
Counseling is a process of educating consumers about how to avoid incurring debts that cannot be repaid. Credit counseling often involves negotiating with creditors to establish revised payment plans.
A credit file includes the following information:
Full name and alias, social security number, address, marital status
Employer name and address, annual salary
Payment history that includes the names of your creditors and the kinds of credit you are using and how you are repaying have paid on time.
Inquirers of your credit file in the last six months, and employers who have requested your report for employment purposes in the last two years. Bankruptcies and foreclosure details are included.
The information that is included on your credit report. Credit history details how you have repaid your debts.
The total amount that a credit card company will allow you to charge to a credit card. If you exceed your credit limit you will be charged an overage fee.
A legal agreement where the borrower is required to pay back a lender.
Often an illegal method of ?fixing? your credit report by trying to erase accurate information from your file.
A credit report details how you have repaid your debts.
A credit score is calculated based on your credit history to give credit card companies a simpler "lend/don't lend" answer. This number helps the lender identify the amount of risk incurred if they lend to someone. The credit score is quicker and less subjective than a credit report. The system awards points based on information in the credit report, and the resulting score is compared to other consumers with similar profiles. A lender can predict if someone is too likely to repay a loan and make payments on time. Credit scoring allows stores to offer instant credit.
The amount which is owed.
The process of taking out one loan to pay off many others. It is often undertaken to obtain a lower or fixed interest rate or for the convenience of paying only one loan.
Counseling that concentrates on people with trouble with debt. They typically involve debt counseling agencies, which work with creditors to reduce a person?s debt by getting interest rates reduced or spreading the payments over a longer period of time to make them more manageable. Non-profit agencies are often affordable and helpful, while many other agencies can be expensive, ineffective and detrimental to a person?s credit.
A process where creditors and debtors negotiate to reduce outstanding balances to recover funds that would otherwise be lost if the debtor declared bankruptcy.
The amount of money owed in outstanding debts in relation to the amount of credit available through all lines of credit. Higher debt-to-available credit ratios signal higher credit risks.
The percentage of pre-tax monthly income that is used to pay off debts such as credit card balances, auto loans and student loans. A front-end ratio is the amount of monthly pre-tax income that is spent on house payments. The back-end ratio includes all outstanding debts.
The status of an unpaid debt account. Accounts are typically recorded as being in default when a debtor has not met his or her legal obligations according to the debt contract (has not made a payment or several payments).
Late or lack of payment on a loan. Due to the monthly billing cycles of creditors, accounts are typically specified as 30, 60, 90, 120 days delinquent.
A demand draft is an electronic check created by a seller with a buyer?s checking account number on it, but without the buyer?s signature. The seller deposits the check into his or her bank account and the check then clears out of the buyer?s account. They are frequently used to purchase items over the phone from telemarketers and are often associated with fraud.
The process of submitting an application to the credit bureaus to have an error on a credit report corrected.
A court order granting a legal dissolution of marriage and establishing the terms of the division of assets, child support and alimony.
An empirica score is a credit score used by Trans Union credit bureau.
Factors such as The Equal Credit Opportunity Act (ECOA) ensure that all consumers are given an equal chance to obtain credit. This doesn?t mean all consumers who apply for credit get it: Factors such as income, expenses, debt, and credit history are considerations for creditworthiness. The law protects you when you deal with any creditor, including banks, small loan and finance companies, retail and department stores, credit card companies, and credit unions.
One of three credit reporting agencies that collects and reports consumer credit information.
Equity is the total assets subtracted from the total liability. Equity is also the value of a property minus the owner's mortgage balance. Another description for equity is the ?book value?, net value, or value of what can be loaned.
Formally known as TRW, Experian is one of the three national credit bureaus that collects and reports consumer credit information.
The FCRA mandates the number of years that a record will be listed on your credit report. Bad credit information will stay on your credit report for 7 to 10 years. Inquiries into your credit will only remain on your credit report for 2 years. Tax liens stay on your credit report for 15 years.
Fair and Accurate Credit Transaction (FACT) Act
The Fair and Accurate Credit Transactions Act of 2003 is a United States law, passed by the congress that allows consumers to request and obtain a free credit report once every twelve months from each of the three nationwide consumer credit reporting companies. In cooperation with the Federal Trade Commission the three major credit reporting agencies established the website HYPERLINK "http://en.wikipedia.org/wiki/Annualcreditreport.com" \o "Annualcreditreport.com" annualcreditreport.com to provide free access to annual credit reports.
The act also contains provisions to help reduce identity theft such as the ability for individuals to place alerts on their credit histories if identity theft is suspected. The act requires secure disposal of consumer information. Another key item was the requirement that mortgage lenders provide consumers with a Credit Disclosure Notice that included their credit scores, range of scores, credit bureaus, scoring models, and factors affecting their scores.
Fannie Mae was created in 1938, under President Franklin D. Roosevelt, at a time when millions of families could not become homeowners, or risk losing their homes, for lack of a consistent supply of mortgage funds across America. The government established Fannie Mae in order to provide mortgage funds under all economic conditions and to help decrease the cost to buy a home.
The Federal Housing Administration, generally known as "FHA", provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories. FHA insures mortgages on single family, multifamily, manufactured homes and hospitals. It is the largest insurer of mortgages in the world; insuring over 34 million properties since its inception in 1934
A FICO score is a credit score developed by Fair Isaac & Co. Credit scoring is a method of determining the likelihood that credit users will pay their bills.
Certain states allow residents to ask the credit agencies to freeze their credit reports essentially blocking creditors and lenders from accessing their credit information.
The finance charge is the cost of using credit. The finance charge may include cash advance fees.
The mortgage of that has the first claim in case of a default.
The constant interest rate for a credit card or home loan.
A fixed rate mortgage is a mortgage where your interest rate does not change, and your monthly payment does not change.
Foreclosure is the proceeding in which a bank or a creditor sells or repossesses property as a result of the owner's failure to comply with an agreement between the lender and borrower called a mortgage or deed of trust.
There are two types of fraud alerts: an initial alert, and an extended alert.
An initial fraud alert stays on your credit report for at least 90 days. You may ask that an initial fraud alert be placed on your credit report if you suspect you have been, or are about to be, a victim of identity theft. An initial alert is appropriate if your wallet has been stolen or if you've been taken in by a "phishing" scam. With an initial fraud alert, potential creditors must use what the law refers to as ?reasonable policies and procedures? to verify your identity before issuing credit in your name. However, the steps potential creditors take to verify your identity may not always alert them that the applicant is not you. When you place an initial fraud alert on your credit report, you're entitled to order one free credit report from each of the three nationwide consumer reporting companies, and, if you ask, only the last four digits of your Social Security number will appear on your credit reports.
An extended fraud alert stays on your credit report for seven years. You can have an extended alert placed on your credit report if you've been a victim of identity theft and you provide the consumer reporting company with an identity theft report. An automated Identity Theft Report, such as the printed ID Theft Complaint available from this Web site, should be sufficient to obtain an extended fraud alert. With an extended fraud alert, potential creditors must actually contact you, or meet with you in person, before they issue you credit. When you place an extended alert on your credit report, you're entitled to two free credit reports within twelve months from each of the three nationwide consumer reporting companies. In addition, the consumer reporting companies will remove your name from marketing lists for pre-screened credit offers for five years unless you ask them to put your name back on the list before then.
The Federal Home Loan Mortgage also known as Freddie Mac, is a government sponsored enterprise of the US Government that is authorized to make loans and loan guarantees. The FHLMC was created in 1970 to expand the HYPERLINK "http://en.wikipedia.org/wiki/Secondary_market" \o "Secondary market" secondary market for HYPERLINK "http://en.wikipedia.org/wiki/Mortgage" \o "Mortgage" mortgages in the United States. Along with other GSEs, Freddie Mac buys mortgages on the secondary market, pools them, and sells them as HYPERLINK "http://en.wikipedia.org/wiki/Mortgage-backed_security" \o "Mortgage-backed security" mortgage-backed securities to investors on the open market. This HYPERLINK "http://en.wikipedia.org/wiki/Secondary_mortgage_market" \o "Secondary mortgage market" secondary mortgage market helps to replenish the supply of lendable money for mortgages and ensures that money continues to be available for new home purchases
A ratio that indicates what portion of an individual's income is used to make mortgage payments. It is calculated as an individual's monthly housing expenses, divided by his or her monthly gross income, and then expressed as a percentage.
Wage garnishment is a legal procedure in which a person?s earnings are required by court order to be withheld by an employer for the payment of a debt.
Ginnie Mae provides guarantees on mortgage backed securities (MBS) backed by federally insured or guaranteed loans, primarily those issued by the Federal Housing Administration.
A grace period is the time you have before a credit card company starts charging you interest on your new purchases -- usually a period of 20 to 25 days.
Hard inquiry is the record created when a business requests to see your credit report when you have applied for credit. Each time this inquiry is made, a notation will appear on your credit report and will remain for 2 years.
A high LTV residential real estate loan is defined as any loan, line of credit, or combination of credits secured by liens on or interests in owner-occupied 1- to 4-family residential property that equals or exceeds 90 percent of the real estate?s appraised value, unless the loan has appropriate credit support. Appropriate credit support may include mortgage insurance, readily marketable collateral or other acceptable collateral that reduces the LTV ratio below 90 percent.
Home Equity Line of Credit is abbreviated as HELOC. This is a loan in which the lender agrees to lend a maximum amount within an agreed time period. The difference from a home equity line of credit, and a standard loan or a reverse mortgage, is the borrower is not advanced the entire sum up front, but uses the ?credit line? to borrow sums totaling no more than the amount.
The part of the value of a home that the mortgage holder owns. It is the the difference between the home's fair market value and the unpaid balance of the mortgage.
A law intended to discourage predatory lending in mortgages and home equity loans by establishing disclosure requirements and prohibiting equity stripping and other abusive practices in connection with high-cost mortgages.
The percentage of monthly pre-tax income applied to a house payment. It is recommended not to exceed 28%.
A nine-digit number given by the Internal Revenue Service to taxpayers who do not have and are not eligible to attain a Social Security number. The number can be used to apply for credit and loans.
A process to fully document an applicant?s income. A loan subject to income verfication typically has a lower interest rate than ?no-income? or ?no-documentation? loans.
An item on a credit report showing an agency with a ?permissable purpose? according to FCRA regulations has requested a copy of the credit data.
A type of loan with the same amount of payment each month; it is typical with auto loans and personal loans.
A limit to the amount the interest rate can increase or decrease over the life of an ARM.
A fee paid on borrowed capital. Interest is calculated as a percentage of the funds borrowed and is payable over a specified time period.
A loan in which, for a set term, the borrower pays only the interest on the principal balance, with the principal balance unchanged. They typically have 1-5 year terms.
A temporary low interest rate offered on credit cards to attract borrowers. The typical introductory rate period is six months, after which the rate automatically increases to a higher fixed or variable rate of interest. The introductory rate can be revoked with a late payment or other violations of the credit card agreement.
An account shared by two or more persons. It is reported on each person?s credit report and each person is legally responsible for the debt on the account.
A ruling from a judge on a civil action or lawsuit. It typically involves paying an amount of money as a penalty or to settle a debt. Judgments remain on credit reports for seven years and harm credit scores significantly.
A mortgage with with a loan amount above the industry-standard definition of conventional loan limits. This standard is set by the two largest secondary market lenders, Fannie Mae and Freddie Mac.
A loan or credit card payment which is not made on time. Late payments hurt your credit rating for up to 7 years. Credit card holders who are late on a payment usually incur late payment charges as a penalty.
As a penalty for late payment the credit card issuer may impose late payment charges if payment has not been made on time. Late payment charges are usually $10-$15.
The financial institution that is providing the loan.
The right to retain the lawful possession of the property of another until the owner fulfills a legal duty to the person holding the property, such as the payment of lawful charges for work done on the property. A mortgage is a common lien.??In its widest meaning, this term includes every case in which real or personal property is charged with the payment of any debt or duty. In a more limited sense it is defined to be a right of detaining the property of another until some claim be satisfied. Tax liens remain on your credit report forever if they remain unpaid for 15 years.
A fee loan origination fee is a fee that you pay a mortgage loan officer to work on your loan.
This fee is for the administrative cost of processing your loan files required paperwork. This fee is a "buyer?s non-allowable fee" which means the seller or lender must pay this fee.
Loan to value ratio is the percentage of a home purchase price that is financed by a loan. LTV is calculated using the appraisal value not the sales price.
Less income verification is required for this type of loan which is designed for business owners or self employed borrowers. Borrowers that do not want to reveal their income may choose this type of loan.
Loans which are secured that require less than a 10% down payment. These are usually reserved for veterans or police officers that are first time buyers.
This term is slang and refers to the practice of charging your credit card to its maximum credit limit. Borrowing to the maximum credit allowed on a card is not good for your credit score.
This may also be called a 3 in 1 report and includes credit data from the three major credit reporting organizations. The information provided is sorted in a way that allows for an easy comparison of the data.
The minimum amount that the borrower requires that you pay each month to repay your debt.
A mortgage banker originates home loans and then sells them to other banks or investors.
A mortgage broker matches borrowers and lenders on what is referred to as the ?secondary lending market?.
Refers to the interest which you have paid on a loan that is tax deductible.
If you have an existing home loan and want to take advantage of lower interest rates you may replace the old mortgage with a new mortgage with better terms. You could also chose to refinance to shorten the payment period, an example of which would be changing your loan period from 30 years to 15 years.
Negative amortization is when the minimum payment you are making towards a loan is not enough to pay for the interest charges. In this scenario your debt will increase even though you are making payment.
This is a loan application process where the borrower provides only a minimum amount of information such as Name, Address and a Social Security Number. The decision to loan to the applicant is made by analyzing their credit history. Loans of this type usually have a higher interest rate since the risk to the lender is higher.
The term opt out refers to the methods by which individuals can avoid receiving unsolicited product information.
A fee the credit card issuer charges for exceeding your credit limit.
The rate assessed, as a penalty, if a borrower is late making payments to the credit card issuer.
The monthly effective interest rate imposed by the credit card issuer. As an example the periodic rate on a credit card with 18% annual percentage rate interest is 1.5% per month.
Permissible purpose is regulated by the Federal Trade Commission, the HYPERLINK "http://www.advantagecredit.com/sign_up/fcra_graham_wiley.aspx" Fair Credit Reporting Act, the HYPERLINK "http://www.advantagecredit.com/sign_up/permissible_purpose.aspx" \l "#" Fair and Accurate Credit Transactions Act, the HYPERLINK "http://www.advantagecredit.com/sign_up/fcra_graham_wiley.aspx" Graham-Leach-Bliley Act, and the three credit bureaus: Experian, Equifax & TransUnion. This protects both the credit applicant and the issuer of credit by specifying exactly the terms of use of credit report information.
A process where one person has a debt and uses a loan from another person, not a bank, to repay that debt. The choice to do this may be a result of the borrower not wanting to ask a bank for a loan or perhaps the loan amount needed is smaller than a bank would be motivated to provide.
An acronym which stands for principal, interest, taxes and HYPERLINK "http://www.investorwords.com/2510/insurance.html" insurance. These are the four components of a mortgage payment.
The point described the fees associated with a loan. A point equals 1% of a home loan. The expense of providing a loan is paid by a lender applying points to the transaction.
A letter from a lending organization that details how much could potentially be borrowed given the current interest rate and the credit history of the borrower. The letter is not binding but suggests the basic terms of the transaction.
A lender may impose a fee to a borrower if a loan is repaid before the term defined by contract. A borrower may chose to escalate loan payments to avoid interest charges over the term of the loan. Most standard lenders do not impose such fees. Buyers should look for this provision in loans before entering into an agreement.
A letter from a lending organization that details how much could potentially be borrowed given the current interest rate and the credit history of the borrower. The letter is not binding but suggests the basic terms of the transaction.
Monies borrowed on a loan; the amount you owe towards a loan excluding any interest.
This type of insurance protects the lender by paying any costs associated with foreclosure if the borrower stops making payments. This insurance instrument is required if the down payment is less than 20% of the purchase price.
Promotional inquiries are often made by credit card companies and lenders to solicit business from potential customers. The credit information that is obtained by the credit card companies to determine potential customers is limited and is not recorded on the clients? credit report.
Information that is obtainable and available to any member of the public. Bankruptcy, tax lien, foreclosure, overdue child support are all considered part of the public record and they are reported to the credit rating agencies to be included on an individuals credit report.
The percentage of income that is spent on housing debt and other household debt.
The consumer may research interest rates offered by credit card companies to determine what the best offer is by soliciting information from several providers.
This agreement requires a debtor that has entered into bankruptcy to continue to pay a debt under modified terms. This allows the debtor to keep the property that would otherwise be repossessed by the lender.
Re-aging a past-due account means your creditor sets the account due date back to current. Some creditors will re-age past due accounts if you agree to enter a debt-workout program. Once enrolled in a debt-management program, creditors typically charge lower interest rates, stop charging late fees, and re-age the account, bringing it current.
The repayment period of a loan is when the person borrowing money has to repay his debt to the lending institution.
If the borrower stops making payments on a home or car for an extended period of time the lender may repossess the asset that was used as collateral for the debt.
A reverse mortgage lets a homeowner convert a portion of the equity in his or her home into cash. The equity built up over years of home mortgage payments can be paid to you. Unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer uses the home as the principal residence.
A revolving account is the process of your account balance and the monthly payment being variable depending on the transactions that have occurred. Credit card balances and repayment are an example of a revolving account.
Credit card companies provide incentive through offering points towards travel or cash back for each dollar charged to the card. Good credit and annual fees are generally required for a cardholder to obtain this offer.
Risk score, also known as credit score is calculated based on your credit history to give credit card companies a simpler "lend/don't lend" answer. This number helps the lender identify the amount of risk incurred if they lend to someone. The credit score is quicker and less subjective than a credit report. The system awards points based on information in the credit report, and the resulting score is compared to other consumers with similar profiles. A lender can predict if someone is likely to repay a loan and make payments on time. Credit scoring allows stores to offer instant credit.
Schumer was the author of a provision in the 1988 Truth-in-Lending Act (TILA) that created the "Schumer Box," the section on every credit card solicitation that provides this information, which asked the Fed to mandate a minimum font size. Long-term interest rates have to be listed in a chart form allowing for comparison between credit card offers in at least 18-point type and all other rates, terms and conditions in at least 12-point type.
A formula that takes into consideration financial data to determine a borrower?s future financial behavior.
A loan that uses home equity as collateral. If the home is sold the first mortgage must be repaid before the second.
A credit card that requires collateral such as a cash deposit which is equal to the credit limit of the card. This is an answer for persons having either no credit history or poor credit history.
Debt secured by collateral to lower the lending risk.
An agreement where a creditor agrees to pay a debt for less than the total amount due. Settlement can negatively affect your credit report.
Government agencies and private businesses use SSNs for a wide range of non-Social Security purposes ? such as employee files, medical records, health insurance accounts, credit and banking accounts, university ID cards, utility accounts, and many others.
An inquiry to the credit reporting agencies does not impact your credit score. The soft inquiry reviews your credit history for credit transactions such as employment or a character reference.
When the borrower has bad credit or cannot meet the criteria for the issuance of ?standard? credit, that person is labeled as a sub prime borrower.
Teletrack is a reporting system that tracks subprime borrowers or those attempting to borrow with no credit history.
An account listed on a credit report is called a tradeline. Account details are recorded in a separate tradeline.
Transunion is one of the three national credit bureaus that collects and reports consumer credit information.
The Universal Default Clause is when a lender changes the terms of a loan from the normal terms to the default terms (i.e. the terms and rates given to those who have missed payments on a loan) when that lender is informed that their customer has defaulted with another lender even though the customer has not defaulted with the first lender.
A loan or the extension of credit made with no collaterial. Generally, credit cards do not require collaterial.
The ratio between the credit limit on your credit card and the outstanding balance.
A loan where the interest rate is tied to a defined economic index.