Credit 101 CST-Vocabulary of Credit.

120 Days Late

A late payment that is paid at least 120 days after the original due date to a financial institution or credit card company. this has a harmful effect on a person's payment history. This is typically right before an account is charged off.

30 Days Late

A late payment that is paid at least 30 days after the original due date. to a financial institution or credit card company this has a harmful effect on a person's payment history.

60 Days Late

A late payment that is paid at least 60 days after the original due date to a financial institution or credit card company. this has a harmful effect on a person's payment history.

90 Days Late

A late payment that is paid at least 90 days after the original due date to a financial institution or credit card company. this has a harmful effect on a person's payment history.

Mortgage

A legal agreement that conveys the conditional right of ownership on an asset or property by its owner (the mortgagor) to a lender (the mortgagee) as security for a loan. ... Virtually any legally owned property can be mortgaged, although real property (land and buildings) are the most common.

Fraud Alert

A notice to a credit reporting bureau that a consumer's identity may have been stolen and a request for new credit in that consumer's name may not be legitimate.

Late Payment

A payment that is made after the due date to a financial institution or utility/finance company.

Authorized User

A person who has permission to use and/or carry another person's credit card, but isn't legally responsible for paying the bill.

Discharged Bankruptcy

A bankruptcy discharge releases the debtor from personal liability for certain specified types of debts. In other words, the debtor is no longer legally required to pay any debts that are discharged.

Judgements

A determination by a court of law that, in the case of credit, may require a person to fulfill an obligation-to pay a debt, for example. When a judgement has been satisfied (i.e, the debit has been paid or settled), the consumer has fulfilled their requirements and is no longer liable. Information about judgments is recorded in the public records section of a credit report.

Dismissed Bankruptcy

A dismissed bankruptcy, you lose the protection of the automatic stay and your creditors are free to come after you to collect their debts. You may also request a dismissal on your own if your circumstances financially have changed.

Tax Lien

A tax lien is the right, usually by the county, state, or federal government, to take possession of your property or assets due to a delinquency on property or income taxes. In the case of property taxes, property is sold because of an unpaid tax lien, you may also default on your mortgage loan

Secured Credit Card

A type of credit card that is backed by a savings account used as collateral on the credit available with the card. Money is deposited and held in the account backing the card. The limit will be based on both your previous credit history and the amount deposited in the account.

Public Records

Any document on file in a public office that the general public has a right to examine. Public records include: bankruptcies, judgments, and liens.

Revolving Loan

Arrangement which allows for the loan amount to be withdrawn, repaid, and redrawn again in any manner and any number of times, until the arrangement expires. Credit card loans and overdrafts are revolving loans

Bankruptcy

Bankruptcy is a legal proceeding involving a person or business that is unable to repay outstanding debts. The bankruptcy process begins with a petition filed by the debtor, which is most common, or on behalf of creditors, which is less common. All of the debtor's assets are measured and evaluated, and the assets may be used to repay a portion of outstanding debt

Collection

Delinquent or pastdue account moved out of routine account processing into the collection department or a collection .

FICO

Fair Issac Corporation

Hard Credit Inquiry

Hard inquiries generally occur when a financial institution, such as a lender or credit card issuer, checks your credit report when making a lending decision. They commonly take place when you apply for a loan, credit card or mortgage, and you typically have to authorize them. Hard inquiries could lower your credit score by a few points and may remain on your credit report for two years. Fortunately, as time passes, the damage to your credit score usually decreases or disappears, often even before the hard inquiry falls off your credit report.

Credit Limit

Maximum amount of money a borrower can charge on, or withdraw from, a particular credit account.

Satisfied Judgement

Once a judgment is paid, whether in installments or a lump sum, a judgment creditor (the person who won the case) must acknowledge that the judgment has been paid by filing a Satisfaction of Judgment form with the court clerk.

Experian

One of the 3 major credit bureaus headquartered in Atlanta GA

Equifax

One of the 3 major credit bureaus, it is also the oldest of the 3.

Soft Credit Inquiry

Soft inquiries typically occur when a person or company checks your credit report as part of a background check. Examples include employer background checks, getting pre-approved for credit card offers and checking your own credit score. Unlike hard inquiries, a soft inquiry may occur without your permission. However, they won't affect your credit score. Soft inquiries may or may not be recorded in your credit report, depending on the credit bureau.

Credit Age

The amount of time any credit account has been opened..

Transunion

Third largest of the 3 major credit bureaus.

Vacated Judgement

Vacating a judgment is when a court voids, or sets aside their previous decision to issue a judgment. ... If a judgment is vacated, that means it is like it never existed. In theory, a judgment creditor could bring a motion to vacate a judgment. However, it is almost always the judgment debtor that files motions to vacate.

Debit Card

a card issued by a bank allowing the holder to transfer money electronically to another bank account when making a purchase.

Lease

a contract by which one party conveys land, property, services, etc., to another for a specified time, usually in return for a periodic payment.

Joint Account

a credit card or bank account that is shared equally by two individuals

Adverse Account

a delinquent account

Dispute

a dispute is a situation in which a customer questions the validity of a transaction that was registered to the account

Installment Loan

a loan that is repaid over time with a set number of scheduled payments; normally at least two payments are made towards the loan. The term of loan may be as little as a few months and as long as 30 years. A mortgage, for example, is a type of installment loan.

Credit Score

a number assigned to a person that indicates to lenders their capacity to repay a loan.

Delinquency

any account past due is a delinquent account. But in the credit card industry, a card issuer usually will not report an account as delinquent until at least 30 days have gone past the due date during which the cardholder has not made at least a minimum payment.

Unsecured Credit Card

are the most common type of credit cards. They are not secured by collateral. That means that unlike secured loans, such as mortgages or auto loans, unsecured credit cards are not directly connected to property that a lender can seize of the cardholder fails to pay.

Charged Off Account

chargeoff is the declaration by a creditor (usually a credit card account) that an amount of debt is unlikely to be collected. This occurs when a consumer becomes severely delinquent on a debt. Traditionally, creditors will make this declaration at the point of six months without payment.

Utilization

credit utilization ratio is the amount of outstanding balances on all credit cards divided by the sum of each card's limit, and it's expressed as a percentage

Payment History

is an indication for lenders and creditors whether an individual is a lending risk due to a history of late or missed payments.

High Amount/Credit Period

period of time recognized by the bureaus as an account having especially high utilization or over limit fees.

Deferred

postpone, suspend, stay mean to delay an action or proceeding. defer implies a deliberate putting off to a later time

Over Limit

refers to a cardholder account that has surpassed its credit limit with a transaction. When cardholders attempt to make purchases that will put them over their credit limit, the card issuer may decline the transactions or may charge consumers hefty over-limit fees.

Foreclosure

the process of taking possession of a mortgaged property as a result of the mortgagor's failure to keep up mortgage payments.

Repossession

to regain possession of b : to take possession of (something bought) from a buyer in default of the payment of installments due.