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Credit: Definitions
Relevant to Credit Cards, Mortgages, Lines of Credits, Car Loans and Other Forms of Credit (Page 2 of 3)
Definitions of credit and credit-related words that are relevant to credit cards, home equity lines of credit
and mortgages:
- Credit History
- The record of what you have borrowed and your performance in repaying debts. Remember that credit cards count as borrowing and paying debts.
- Credit Report
- A report generated by a Credit Bureau that lists your credit, repayment, residence and employment history to help determine creditworthiness (risk).
- Creditor
- A person or business you borrow from, or owe money to. A grantor of credit.
- Credit-Related Insurance
- Health, life, or accident insurance designed to pay the debt you have outstanding.
- Credit Scoring System
- A system creditors use to help determine whether to give you credit. The system evaluates your ability to repay loans. The scoring
system uses various characteristics relevant to whether you would be a good risk for credit. It is used for credit card applications,
auto loans, home mortgages, equity lines of credit and other credit.
- Creditworthiness
- A creditor's measure of an individual's or company's ability and willingness to repay debts.
- Debit Card (EFT Card)
- A plastic card that looks similar to a credit card that consumers can use to make purchases, withdrawals, or other types of
electronic fund transfers. Unlike a credit card, however, the money is deducted directly from the cardholder's bank account when
the transaction is made with the card. When a debit card is used, it does not have consumer protections guaranteed by law to credit card users.
- Default
- Failure or unwillingness to repay a loan or meet the terms of your credit agreement.
- Disclosures
- Information about the financial and other terms and conditions of a lease or credit purchase that must be given to consumers about their financial dealings according
to federal and state laws.
- Elderly Applicant
- A person 62 or older, as defined by the Equal Credit Opportunity Act.
- Electronic Fund Transfer (EFT) System
- A variety of systems and technologies for transferring funds electronically rather than by check.
- Exemplary Damages
- Another term for Punitive Damages.
- Finance Charge
- The total cost of credit expressed in dollars. For example it can be interest charged on your balance outstanding, or the charge
for using a credit card, made up of interest costs and other fees.
- Home Equity Line of Credit
- A form of open-ended loan that lets the borrower borrow against the equity in a property. The home serves as collateral.
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