Abstract of Title- A statement that holds all transactions to a parcel of land. The statement states from when the property was first sold and goes to the present.
Access Check- A check provided by credit card companies that allows the credit card holder to withdraw a certain amount of money based on their available line of credit.
Account Agreement- The terms and conditions of a credit card.
Account Condition- Shows what the present state of the account is in, but will not show any payment history. This will include if one paid off an account, settled the account or foreclosed on the account.
Account Number- The number that identifies with your account. Many accounts will remove some of the numbers on a credit report as an added measure of fraud protection.
Account Statement- A printed report of all transactions made during the month.
Accounts in Good Standing- Items on your credit report that will reflect in a positive manner towards your score.
Acre- An area of land that measures 43,560 square feet.
Acquiring Financial Institution- A bank which processes credit cards for merchants daily, then settles those transactions with the card issuer.
Active Account- An account in which recent purchases were made.
Adjusted Balance- Subtracting payments made during the month, and then adding charges in.
Adjustment- The percentage of a debt that is willed to be payed back after filing Chapter 13 bankruptcy to the credit grantor.
Adjustment Interval- This interval states how often the rate of the loan may be changed.
Affinity Card- A credit card that is in association with two organizations. One organization will be a card issuer and the other will be non-financial group. The non-financial group will have an affinity with the consumers.
American Express-Sometimes referred to as AMEX. One of the main issuing credit card companies.
Amortization Schedule- A schedule of payments that allow one to gradually repay a loan.
Amortization term- The time scheduled to repay back a loan.
Annual Fee- Special once a year charge that many creditors will require the lender to pay.
Application Scoring-A model that is used score credit applications. The score will determine if a lender will approve an application or not.
APR- Stands for Annual percentage rate. This is how much interest you will pay, or how much the loan will cost you.
Approval Response- When a transaction is approved, this is the authorization response.
ATM- Automatic teller machine. An automated machine that allows credit and debit card users to withdraw cash.
Authorization Amount- The amount that a transaction is approved for.
Authorization Date- The date that that transaction is approved for.
Authorized Transaction- An approved transaction.
Authorized User- A person that is given permission by the person holding the credit card to make charges. The authorized user will not be held responsible for any payments that need to be made. Note that the charges will also be placed on the authorized user's credit report.
Automatic Funds Transfer- Moving funds from one account to another automatically.
Automatic Payment- A payment that is processed that is made from regular withdrawals from your checking or savings accounts.
Average Daily Balance- Method used on figuring what the minimum amount due is for a credit card. Figured on adding daily balances together, then dividing it by the total number of days in a cycle.
Bad Credit- Poor credit rating. Late payments, declaring bankruptcy, or skipping payments can all result in a poor credit rating.
Balance- The amount owed on a credit card at any time.
Balance subject to interest charge- The portion of the balance due that is used to calculate interest on your account.
Balance Transfer-Moving the amount of a credit card balance to another credit card.
Balance Transfer Fee- The amount of money you will pay to have balances transferred to another account.
Balloon Payments- A loan that is paid in installments, with a single payment made at the end of the term of the loan.
Bank Identification Number- Also known as BIN. This is the first six digits of a Visa or MasterCard.
Bankcard- A card used to issue payments by banks.
Bankruptcy- Legal code that relieves credit card users from repaying debt.
Bankruptcy Code- Federal laws provided in which a credit borrower may find relief if they have debts they can not repay.
Billing Cycle- The time between credit card statements.
Biweekly Mortgage- A mortgage with payments scheduled to be made every 2 weeks. There are 26 payments made that are one half of the monthly mortgage. The mortgage will be paid off sooner and there is a reduction in the interest rate paid.
Bounced Check- A check that has been returned unpaid.
Bridge loan- A loan that has collateral of the current home, in which the current home is used to close on a new home. The loan will run for approximately 6 months.
Broker Premium- Money paid to the mortgage broker for helping with the sale or find of a home.
Buydown- Trading money for a lower interest rate, in which discount points are used to buy down the interest rate.
Capacity- Used to determine creditworthiness. Calculated by determining if the person has a earning ability with the likelihood that they will continue to have this income against the amount of debt the person has.
Caps- In an adjustable rate mortgage, this is the highest amount the interest rate will change.
Card Reader- A device used to read the encoding on plastic cards, such as credit cards and debit cards.
Cash Advance- The amount of money a creditor is willing to advance to you using an ATM machine.
Cash Advance Fee- The amount of money you will be charged to access a cash advance.
Cash Back- Money returned to you at a certain percentage based on what you have bought.
Cashier's Check- A check from the bank that comes from its funds. It is only issued for the amount that it is bought for, so therefore it will not bounce.
Certified Check- A check that the bank guarantees payee payment of.
Chapter 7 Bankruptcy- Court administered liquidation of the assets of the person filing bankruptcy.
Chapter 11 Bankruptcy- Filed to prevent the liquidation of assets. Both businesses and individuals may file this.
Chapter 12 Bankruptcy- Used for the farming community. Administered like chapter 11, but with special conditions for the farming family.
Chapter 13 Bankruptcy- Bankruptcy filed but the debts must be repaid according to a plan that the creditor accepts.
Charge Off- A debt that the lender never expects to be repaid and will write off as bad credit.
Clear title- A title that is free of all liens.
Closing Costs- The fees that both the buyers and sellers have when property is transferred. These costs will most likely include an attorney's fee, an ordination fee, and any taxes.
Closing Statement- A final statement that states where all funds are accounted for.
Commission- The fee that the broker makes for helping with the sale of the home. This is usually paid for by the buyer of the property.
Collection- Attempting to recovery any past due debt from an agency.
Consumer Credit File- A record kept on a individual from a credit bureau.
Co-signer- A person of legal age that signs a credit card agreement for someone who is not yet of legal age.
Credit Bureau- A company that sells information on you based on your credit card score. There are three major credit bureaus: Experian, TransUnion, and Equifax.
Credit Bureau Risk Score- A credit score offered based on the data found at the major credit bureaus.
Credit Card Number- The number assigned on your credit card.
Credit History- A report showing how a consumer paid off past debt.
Credit Limit- Total amount of money that may be charged to a credit card.
Credit Monitoring Services- A services that looks out for suspicious activity on credit cards.
Credit Obligation- An agreement that states what the lender is required to pay back legally.
Credit Report- Information that credit bureaus have collected on you such as SSN, name, address, credit history, and public records.
Credit Score- The number given to you based on how well you repay back what you have been lent.
Current Payment- The amount that is due.
Daily Periodic Rate- The APR divided by 365.
Date Filed-The date that the public record was awarded.
Date of Status- The date that a creditor last reported information about a consumer.
Date Opened- The date that an account was opened, as seen on the credit report.
Date Resolved- The date that the matter was taken care of as in a public record item.
Days on the Market- The amount of time from which the home was first placed on the market and then taken off.
Dealer Charges- Charges that are incurred for an extra service or product. This may include extended warranties.
Debit- A decrease in an account.
Debit Card- A plastic card much like a credit card that one uses to deduct money from a checking account.
Debt Consolidation- Combining multiple loans into one loan to get a better rate or a longer repayment term.
Debt to Income Ratio-A portion of a consumer's monthly wages that are used to pay off any debt. There are two types of ratios to consider, one being front end ratio, in which monthly housing expenses are compared pretax to the consumer's gross earnings. The other is a back end ration, where the consumer's other debt, such as credit cards or auto loans, are considered into the equation.
Default- Failure to make a loan payment on or before the due date.
Delinquent- An account that is past due.
Deposit- Money added into an account.
Disclose-The FCRA requires that a consumer is provided with his credit history.
Dismissed- When a judge does not allow a bankruptcy.
Dispute- When a consumer believes that an item on their credit report is inaccurate, they challenge it, known as a dispute.
Down Payment- The portion of the home that the consumer pays for in cash and does not use any loans for.
ECOA- Equal Credit Opportunity Act. Federal laws that protects creditor applicants from being discriminated from. This is based off sex, race, age, religion, color, marital status and if any assistance is received.
Electronic funds transfer- Known as EFT. A transfer of funds from an electronic source, such as a terminal, ATM or computer.
Emergency Cash- Cash given by a financial institute in the need of an emergency.
Encryption- Encoding personal information to be secure when sent over the internet.
Encumbrance- A lien against a property.
Equifax- One of the three major credit bureaus. It's headquarters are in Atlanta, GA.
Escrow payments- A portion of the homeowner's monthly mortgage payment is held by the lender for tax purposes.
Experian- One of the three major credit bureaus. It is headquartered in Costa Mesa, CA.
Expired Card- A card that the date has expired on.
Fair Credit and Charge Card Disclosure Act- Amendments that must disclose the costs of the credit card offers that are received in the mail, by telephone, or any application that the public has access to.
Fair Credit Billing Act- Legislation that uses an error resolution procedure in order to protect credit card consumers from making payments that are not necessary.
Fair Credit Report Act- FCRA. The legislation that the credit card bureaus must follow.
Fair Debt Collection Practices Act- FDCPA. Rules that prohibit the unfair practice of debt being collected.
Federal Deposit Insurance Corporation- Often known as FDIC. This independent agency will insure the money deposited into your bank account.
Federal Housing Administration- Also known as FHA. This agency insures that residential mortgage lenders. They do not lend any money but set the standards for mortgage lenders.
FICO Score- Credit bureau risk scores. Developed for the Fair Issac Corporation.
Finance Charge- The amount of interest you will be charged.
Fixed Rate- An APR that does not change.
Float-The time between the date a check is deposited and when the funds become available.
Fraud- Use of a credit card or account that is not authorized.
Gap Insurance- Insurance in which auto lease consumers utilize. In case the vehicle is stolen or damaged, this insurance will pay off the difference between what the car is worth and what is still owed on the vehicle.
Garnishment- A portion held out of one's check, then submitted to another party for payment of debt.
Generation Identifier- Used to identify a person such as Miss, Mr. Mrs, Sir, etc.
Geographical Code- This code is very similar to the zip code. It helps to represent state, county, tract and block group from the Census Bureau.
Gift- Money that is given that does not need to be repaid.
Gift Tax- Tax paid to the federal government if a gift exceeds the level determined by the IRS.
Ginnie May- The nickname of the Government National Mortgage Association.
Good Faith Estimate- An estimate of closing costs that must be made within 3 days of submitting a loan application for a mortgage. The lender will provide this to the consumer. Also known as GFA.
Government National Mortgage Association- A special loan assistance program.
Grace Period-The amount of time that the consumer has to pay a bill before being charged a late fee.
Guarantor- Person who will be responsible for paying the bill due.
Hard Inquiry- A item on a consumer's credit report based on when someone asks for a copy of the report. A hard inquiry will be used to determine a consumer's credit score.
Hazard Insurance- Coverage that will kick in from a natural disaster such as a fire or a tornado.
High Balance- The balance on an account that has been highest to this date.
Hold-Delay in the availability of a deposit.
Inactive account- An account where there have not been any recent transactions for a period of time.
Inquiry- Shown on your credit report, this simply states that someone with a permissible purpose requested a copy of your report.
Installment Credit- Debt is paid in installments at specific times.
Interchange- A discount rate.
Interest bearing- Any account that accrues interest.
Interest Charge- A fee that is charged. Calculated by multiplying the interest rate with the credit card balance.
Interest Rate- The percentage of interest paid.
Interest Rate Cap-The top amount of interest that may be charged to a consumer.
Introduction Rate- A very attractive, temporary interest rate.
Investigation- When a credit card charge is disputed, this is the process that must be taken in order to verify the information.
Joint account- An account held by two or more people.
Judgment Granted- A final determination as to what will happen.
Jumbo mortgage- A loan in which the limits set by Fannie May and Freddie Mac are exceeded. This type of mortgage has a higher interest rate than a standard mortgage.
Kiddie Tax- Taxation on children under the age of 18 who have an investment income of $1,700 or more. This includes rent and royalties, as well as interest and dividends.
Late Fee- The fee the consumer will pay if payment is not received on time.
Late Payment- A payment that was not received by the due date.
Last Reported- The last date that the creditor reported about.
Liability Amount- The amount you are legally owed to pay a creditor.
Linked account- An account that is linked to another account at the same financial institution.
Lien- A legal document that creates security. A lien is often used to give security as a payment for a debt.
Line of Credit- The most a creditor can withdraw or be shown as outstanding.
Location Number- The page number and book number of court records when your item is placed in it.
Magnetic Stripe- The strip of magnetic information that is placed on the back side of a credit card. This strip contains information about the consumer and the account itself.
MasterCard- A bank card payments branch that is global.
Maturity Date- The date in which a CD term is ended.
Membership fee- An annual fee.
Merged Bureau Report- A credit report in which information from all 3 major credit bureaus(Experian, TransUnion, and Equifax) are all combined.
Minimum Daily Balance- The lowest amount in an account in one day during the statement cycle.
Minimum Payment- The least a consumer may pay for that month.
Mixed file- This type of file occurs when information from two or more persons is so similar that the wrong information is added to the wrong person's account.
Monthly Periodic Rate- The rate that is used to determine finances charges.
Months Reviewed- The number of months that an account is reviewed for payments that are late.
Mortgage- The monthly payment for a house loan.
Mortgage Identification Number- A number that represents a mortgage. This loan is registered with the Mortgage Electronic Registrations Systems, Inc. This will track the ownership of mortgage rights.
Most Recent Date- Balance date.
National Issuers- Banks that issue credit cards. These banks are in all 50 states.
Negative Option Deals- Deals in which a free trial is offered. If the consumer does not cancel the account in time, charges will be automatically placed on a credit card.
Negative Public Record- A public record, such as bankruptcy, that will lower a credit score.
Never Pay- When a consumer opens a credit card account, and within two months, has not paid.
Nonbanks- Institutions that are offering financial products or offers but are not considered to be a bank or credit union.
New account- Any account that has just been opened.
Nondischargeable Debt- A debt in which it may not be taken away, such as when filing bankruptcy.
No Record of file- No information or record is found on an individual.
Notice of Results- Corrected information that is a result of an investigation.
Null- Something that has no legal force behind it.
Obligation- A promise or a debt.
Obsolescence- The amount of time that negative information will stay on a credit file before it is not relevant anymore.
Open Account- An account which within 30 days the consumer has agreed to pay the full amount. No finance charge is received. Could also mean that the account is still open.
Open Loop- General purpose cards that are accepted where ever the MasterCard, Visa, American Express or Discover logo are accepted.
Opt-in- A consumer can have their name added back into the prescreened credit card offers after they have opted out.
Opt-out- A decision the customer can make to limit the amount of information that is shared to others.
Original Amount- The amount the loan was originally made for.
Outstanding Debt- An amount that is still owed on an account.
Overdraft Protection- Funds are automatically transferred from one account to another when there are insufficient funds available.
Overlimit Fee- When the balance on an account exceeds the limit, a fee will be given.
Past Due- When an account is delinquent.
Payment- A credit to an account.
Payment history- The amount of time on an account since it was first opened.
Payment Pattern- Month to month information listed for a 24 month period for each account a consumer has in a credit report.
Payment Status- Information in a credit report that states if the consumer has made payments or has missed any.
Penalty Rate- A rate that is higher if the consumer has become delinquent, usually after 2 missed payments.
Permissible Purposes- Issued by a third party. Can include insurance underwriting, credit transactions, court orders, employment purposes, etc.
Personal Information- Information about a consumer that is on your credit report that is associated with you. This include full name, address, social security number, date and year of birth, any employers, your spouse, and more.
Platinum Card- A credit card with a higher credit limit and more benefits.
Portfolio Type- The type of loan a consumer has.
Posting Date- The recorded date of a credit card transaction.
Potentially Negative Terms- A credit item that has the potential to have a negative effect on your credit report.
Power of Attorney- POA. A legal document that authorizes another person to make decisions on the behalf of another person.
Pre-approved offer- A loan offer that is given to a consumer that has pasted the first steps, known as the preliminary screening.
Prepay- Repaying debt faster than the lender requires the consumer to.
Prepayment Penalty- A fee that is given if debt is paid off faster than planned.
Present Status- The most recent payment made on an account will be shown as this.
Previous balance- Last month's balance that was due, after payment and all charges have been made.
Primary User- The main user of an account whose name is on the card.
Prime Rate- An interest rate that is charged by banks. A certain percentage is often added to the prime rate. This rate will change based on the need of money, as well as the rate that the US Federal Reserve bank charges to members of a bank.
Principal- The outstanding balance of a loan, which does not include interest or any other charges.
Public Records- In a public office, a document that is made available to the public.
Punitive Account- An account that has a high APR and fees with a low credit limit.
Qualifying Ratio- A ratio that is determined to see if a consumer can repay debt obligations.
Quick Response Codes- A bar code that is scanned and read by an electronic device.
Reaffirm- A consumer's account that was originally declared as bankrupt but the consumer then removed it and agreed to repay the amounts as agreed to first so the account could still be used.
Recent Balance- The balance owed to a creditor that is the most recent.
Recent Payment- A payment that was made on an account recently.
Refinance- Setting up a new payment system for a loan to most generally make smaller payments.
Released- A lien has been fully satisfied.
Repossession- Surrender of merchandise that is forced when it has not been paid for.
Responsibility- Determines who is responsible for an account.
Retail Card- A credit card that has been issued by a retail store.
Revolving Charge Account- An account that incurs a service charge on top of a minimum payment each month.
Satisfied Judgment- When an account is paid in full.
Scheduled Payment Amount- The amount that the credit grantor decides is the payment due, not the actual payment amount.
Second Mortgage- A mortgage taken out when a home has a first mortgage already.
Secured Credit Card- A credit card that has been secured with a cash deposit. If the account does become delinquent, the consumer that paid the deposit may lose it . This credit card is very little risk to lenders due to the fact that the credit limit is based off the deposit amount.
Secured Loan- A loan that has been guaranteed by assets. If the borrower defaults on the loan, the lender may take possession of these assets, which could include property or cash.
Security- Property that a person pledges in case they default on a payment. If the borrower fails to make a payment, ownership of the property could become the lenders.
Security Alert- An alert on a statement that states that a consumer could be a victim of fraud.
Segment- A credit portion that will contain certain types of information.
Set Aside- To make something null.
Settlement- Resolving a matter through means of a compromise.
Signature Visa- A Visa credit card account with more benefits that does not have a preset limit on it.
Sixty Days- A term used for a payment status when 2consecutive payments have been missed on an account.
Source- The organization that the information on a credit report comes from.
Soft Inquiry- When a lender requests a copy of your credit score, and it does not generate an inquiry about the credit data.
Social Security Number- The number given to legal US citizens. Each number is unique and contains 9 numbers. This is the main way to identify a person.
Subscriber Code- A seven digit number that is unique that credit bureaus use to identify lenders who are giving information to the credit bureaus.
Summons- Legal action that is taken to make someone appear in court.
T (tiered)- This is a code that is used after an APR to represent that the APR is tiered. There are different APRs based on the balance.
T&E Card- A travel and entertainment card. Usually only accepted by airlines, hotels and restaurants.
Term- The time that a borrower has to repay a loan back.
Terms Duration- How long the payments will take place for, example 12 months.
Terms Frequency- The time scheduled between payments.
Testamentary-This is also referred to as a letter of testamentary. A legal letter is formed and indicates who will be the legal executor of a deceased person's estate.
Thin File- A credit report that has hardly any information. Usually these persons have a low credit rating.
Third Party Collectors- A collection agency that is under the instruction to collect debts.
Tradeline- In a credit report, the tradeline provides information on the credit card account, as well as any public information or inquiries.
TransUnion- One of the three major credit bureaus.
Transact- Paying off the balance due each month.
Transaction Date- The date that the services were purchased.
Transaction Fee- A fee that the borrower must pay each time a transaction is made.
Transactor- A person who pays off the full balance each month.
Truth In Lending Act- Lenders must disclose the annual interest rate, total dollar cost, as well as other terms of the loan.
Unbanked- Consumers who do not have a bank account and only use cash or prepaid cards.
Underwriting- Extending credit to those who match the risk profile.
Unpaid Derogatory- A negative payment status other than bankruptcy. The balance is often settled for less than what is owed.
Unsecured Loan- A loan that is not used with collateral. The consumer promises to repay the money back. Also known as unsecured credit.
Universal Default- A practice that credit card issuers use to increase the interest rate in conjunction to other credit cards that have been paid late. This goes for loans and mortgages as well. The issuers see the consumer as risky.
User Authorization- Validating a user's identity, a process that has become non-existent in these times.
Usury- Lending of money with higher interest rates. There is a cap on the interest rate that may be charged in most states.
Utility Account- An account with the utility company.
Utilization Ratio- Comparison of credit used to credit available.
Vacated- A judgment that was set aside.
Variable- Also known as V. This is noted as a code that appears after the APR to note that the account has a variable APR,meaning that it changes from time to time.
Verification- The process of seeing if data in a credit report is correct or not.
Victim Statement- Statement added to a credit report in which the consumer has had their identification used to obtain a form of credit under fraud. The consumer will be contacted via phone call before credit is issued. This statement is on the credit report for 7 years unless it is removed by only the consumer.
Voluntary Bankruptcy- When a person files bankruptcy on their own.
Wage Assignment- An agreement from either the borrower or the lender that has been signed stating that if the consumer become default on payments, wages can be garnished.
Wage Earner's Plan- Creditors do not continue to try and collect debt under this plan. This is for Chapter 13 bankruptcy.
Waiver- Giving up rights, either voluntary or involuntary.
Walkaway Lease- A close ended lease. Used for car loans. The person leasing the car may return the vehicle at the term end of the lease, and after paying any fees, the lease is terminated.
Walk-through- A final inspection made by the buyer.
Warranty Deed- The grantor guarantees that the home has a clear title and is free of liens.
Well Established Credit History- A credit report that has a long history of activity.
Withdrawn- The decision not to file something after court papers have been drawn, such as in the case of a bankruptcy.
Workout Plan- A plan that reschedules payments. Agreed upon by both the lender and the consumer. The debt is agreed to be repaid over a longer duration than the original plan.
Wraparound Mortgage- A new mortgage with the old mortgage added into it.
Writ of Replevin- Repossession of security issued by a legal document.
Yield Curve- Graph that shows yields and maturity dates and the relationship between the two.
Zero Balance- Having a balance of zero, owing no money to a creditor.
Zero-down payment mortgage- A mortgage borrows the entire amount, and does not put a down payment down.
Zero-lot Line- A home that is built on a lot with one wall being directly on the property line boundary.
Zoning- Rulings for how land may be used. Up the the local government.
Zoning Variance- A exemption in a local zoning ordinance that is granted by the local government.
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