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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 and credit bureau data in order to access likely future performance
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Bankruptcy
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a proceeding in U.S Bacnruptcy court that may legally release a person from repaying depts 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 collectin department or agency
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consumer credit file
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a credit bureau record on a given individual. it may include: sonsumer name, address, social security number
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credit bureau
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a credit reporting agency that is a clearinghouse for information on teh credit rating of individuals or firms.
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credit bureau risk score
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a type of credit score based soley on data stored at the major credit bureaus.
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credit history
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a record of how a consumer has repaid credit obligaitons in the past.
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credit obligation
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an agreement by which a person is legally bound to apy back borrowed money or sued credit
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credit report
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information communicated by a redit reporting agency taht beras on a soncumers 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. borrowers who are more liley to pay as agreed pose to less resk to creditores and lenders
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credit score
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the term is often used to refer to credit bureau risk scores. it bradly refers to a number generated by a statistical model which is use dto objecrively evaluate information taht pertains to making a credit decision
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default
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a failure to make a loan or debt payment when due. usually an accoutn is considered to be in default after being delingquent for several consecutive 30 day billing cycle
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delinquent
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a failure to deliver even the ninimum payment on a 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 taht prohibits descrimination 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 fo information in teh 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 croporation are commonly known as fico scores
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inquiry
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an item on a consumers credit report that shows taht someone with a permissible purpose has previously requested a copy of the consumers report
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installment debt
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debt to be paid at regular times over a specified period
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insurance bureau score
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an insurance rating based soley 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 befroe teh 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 statistical formula that is used, usually with the help of computers to estimate furture perfomrance of prospective borrowers and existing customers
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