| A | B |
|---|
| Co-Signer | In regards to a credit card or line of credit, if needed this is a person responsible for making the payment owed if the individual does not. Becoming a co-signer can negatively impact a persons credit. |
| Credit Reports | A statement of a individauls credit histroy issused by a credit bureau. It is a complete record of your borrowing and repayment performance. |
| credit score | Numerical rating system of an individuals credit complied on a point system by the three main credit bureaus |
| credit bureaus | Busninesses that gather, store and sell credit imformation about individuals to their business memebers. There are three main credit bureaus- Experian, Equifax, trans union |
| minimum payment | The smallest amount a individual can pay back on a credit card or loan. |
| secured loans | Loans given with the backing of a tangible item. If the loan is not repayed the item will be returned. Example, homes and cars |
| unsecured loans | Loans given out of faith and trust that have no real tangible backing that, in theory, will not be returned or collected if the payments are not made. Example, jewelry |
| finance charge | Any fee assiciated with the cost of credit or the cost of borrowing. |
| bankruptcy | A legal procedure to relive someone of excessive debt. Bankruptcy can only be granted by federal district court. |
| chapter 7 bankruptcy | When a individaul declares bankruptcy and rather then paying the debt, the collecting party receives property from the individual filing for bankruptcy. Example, banks will collect a house |
| chapter 11 bankruptcy | Business reorganization. In this form of bankruptcy businesses can remain in operation assuming their re-organizational plan is approved by the federal courts. |
| chapter 13 bankruptcy | This form of bankruptcy calls for a person to enter a repayment plan. Rather then losing there assets, the individual, who has a source of income, follows a court orderd repayment plan for a 3-5 year duration. |
| due date | The date in which a payment must be received. |
| truth in lending act on 1968 | A federal law to requirce credit companys to disclose its terms, calculations, and costs in a standardized manner |
| default | Failure to pay back a loan |
| forclosure | The legal process in which the lender attempt to recover the balance of the loan barrowed from the individual who has stopped making payments. This is most commonly associated with house payments |
| late fee | The fine associated with not making a payment on or before its intended due date |
| credit limit | The maximum dollars a indivdiual can borrow from a lending company |
| mortgage | The form of a secured loan where individual agrees to pay back the lending company over the purchasing of a home |
| repossesion | The term when lending organizations takes back the item used as collateral when the payments are not made, 2 most frequenty used in this term is cars and houses |
