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23 Cards in this Set
- Front
- Back
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Application Scoring
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The use of a statistical model to objectively evaluate and "score" credit applications
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Bankruptcy
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A proceeding in U.S. Bankruptcy Court that may legally release a person from repaying debts owed.
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Charge-off
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The balance on a credit obligation that a lender no longer expects to be repaid and writes off as a bad debt.
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Collection
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Attempted recovery of a past due credit obligation by a collection department or agency.
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Credit Bureau
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A credit reporting agency that is a clearing house for info. on the credit rating of individuals or firms.
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Credit Bureau risk score
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A type of credit score based solely on data stored at the major credit bureaus.
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Credit history
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A record of hoe a consumer has repaid credit obligatios in the past.
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Credit Obligation
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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 report
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info. communicated by a credit reporting agency that bears on a consumer's credit standing.
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Credit risk
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The likelihood that an individual will pay his or her credit obligations as agreed.
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Credit score
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This term is often used to refer to credit bureau risk scores.
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Default
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A failure to make a loan or debt payment when due.
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Delinquent
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A failure to deliver even the mininum payment ona loan or debt payment on or before the time agreed.
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Equal Credit Opportunity Act (ECOA)
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Federal legislation that prohibits discrimination in credit.
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Fair Credit Reporting Act (FCRA)
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Federal legislation that promotes the accuracy, confidentiality and proper use of info in the files of every "consumer reporting agency"
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FICO scores
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Credit bureau risk scores produced from models developed by Fair Isaac Corporation.
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Inquiry
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An item on a consemer's credit report that shoes that someone with a "permissible purpose" has perviously requested a copy of the consumer's report.
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Installment debt
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Debt to be pait at regular times over a specified period.
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Insurance bureau score
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An insurance rating based solely on credit bureau data stored at the major credit bureaus.
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Late payment
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A delinquent payment; a failure to deliver a loan or debt payment on or before the time agreed.
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Revolving debt
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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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Scoring model
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A statiscal formula that is used, usually with the help of computers, to estimate future performance of prospective borrowers and existing customers.
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Consumer Credit file
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A credit bureau recored on a given individual.
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