credit history
a summary of a person's borrowing and repayment history
credit bureau
a private business that gathers, stores, and sells credit information to other businesses
examples of credit bureaus
TransUnion Experian Equifax
credit report
a report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness.
credit guard
a hired company that monitors credit files of its customers
credit freeze
a consumer report that requires the credit bureaus to deny all access to a consumer's credit information or files
subscribers
people who pay a monthly fee to the credit bureau
character
responsible attitude towards honoring obligations
creditworthiness
a good risk for credit
qualifications of creditworthiness
character capacity capital conditionscollateral
capacity
financial ability to repay a loan
capital
financial assets
examples of capital
bank accounts investments property
assets
things one owns
liabilities
things that you owe
net worth
assets > liabilities
conditions
external factors that affect one's ability to repay a debt
examples of conditions
economic changes job security security in the field of employment
collateral
pledged property
co-signer
someone who promises to pay if the borrower fails to pay
credit rating
a measurement of creditworthiness based on an analysis of your credit and financial history
excellent credit rating
A rating; a customer pays bills before due dates
good credit rating
B rating; a customer pays bills on the due date or within a ten-day grace period
fair credit rating
a customer who usually pays all bills within the grace period, but occasionally takes longer
poor credit rating
a customer who is usually denied credit because their payments are not regular
credit score
the total of a numerical rating based on a person's credit history that represents their credit worthiness
point system
points assigned by the credit bureau for the amount of current debt, number of late payments, types of open accounts, current employment, amount of income, etc
FICO Score
a credit rating formula developed by Fair Isaac & Company; used by lenders and employers; consists of digit numbers ranging from 300-850
credit inquiries
an indication that a business requested a credit check
public information section
part of a credit report that lists information like lawsuits, judgments, bankruptcy, property purchases, marriage, divorce, etc
credit information section
part of a credit report that lists businesses that ones owes money like department stores, credit card companies, and other loans
summary of information section
part of a credit report that tells subscribers what to look for as they read the credit report; the first section
account details section
part of a credit report that shows the monthly balances of accounts; it also lists credit limits
requests for credit history section
part of a credit report that show the inquiries made on your account
personal information section
part of a credit report that lists facts that you have given when appyling for credit such as name, previous names, contact information, whether you own or rent, birthday, social security number, driver's license number, spouse's name, employment history,
consumer credit protection act
also know as Truth-in-Lending
requires lenders to fully disclose all costs of a a credit purchase
limits consumer's liability to $50 after a report theft of a credit card
requires a three-day grace period in which consumers can change their minds about a
finance charge
the total dollar cost of credit
fair credit reporting act
the right to know what is in your credit file and who has see it
gives the right to see your credit file for fee within 30 days of a credit denial
the right to write your side of the story about damaging information
fair credit billing act
the right to resolve billing errors on a statement with a specific time period
equal credit opportunity act
states that a business entity may not discriminate against a credit applicant on the basis of race, color, religion, national origin, age, sex, or marital status
fair debt collection act
federal legislation that was passed to protect consumers from inappropriate collection activities such as harassment or deception