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22 Cards in this Set
- Front
- Back
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The use of a statistical model to objectively evaluate and "score" credit applications and credit bureau datain order to assess likely future performance.
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Application scoring
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A proceeding in U.S. Bankruptcy Court that may legally release a person from repaying debts owed. Bank reports normally include bankruptcies for up to 10 years
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Bankruptcy
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The balance on a credit obligation by a collection department or agency.
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Charge-off
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Attempted recobery of a past-due credit obligation by a collection department or agency.
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Collection
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Credit bureau record on a given individual.
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Credit bureau
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A type of credit score based solely on data stored at the major credit bureaus.
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Credit bureau risk score
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A record of how a consumer has repaid credit obligations in the past.
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Credit history
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An agreement by which a person is legally bound to pay back borrowed money or used credit.
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Credit obligation
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Information communicated by a credit reporting agency that bears on a consumer's credit standing.
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Credit report
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The likeligood that an individual will pay his or her credit obligations as agreed.
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Credit risk
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refers to credit bureau risk scores
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Credit score
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A failure to make a loan or debt payment when due.
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Default
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A failure to deliver even the minimum payment on a loan or debt payment on or before the time agreed.
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Delinquent
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Federal legislation that prohibits descrmination in credit.
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Equal Credit Opportunity Act (ECOA)
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Federal legislatoin that promotes the accuracy, confidentiality and proper use of information in the files of every "consumer reporting agency"
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Fair Credit Reporting Act
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Credit bureau risk scores produced from models developed by Fair Isaac Corporation
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FICO scores
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An item on a consumer's credit report that shows that someone with a "permissible purpose" (under FCRA rules) has previously requested a copy of the consumers credit report.
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Inquiry
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Debt to be paid at regular times over a specified period.
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Installment deby
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An insurance rating based solely on credit bureau data stored at the major credit bureaus.
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Insurance bureau score
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A delinquent payment
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Late payment
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Debt owed on an account that the borrower can repeatedly use and pay back without having to reapply every time credit is used.
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Revolving debt
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A statistical formula that is used, to estimate future performance of prospective borrowers and existing customers.
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Scoring model
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