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23 Cards in this Set
- Front
- Back
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Application scoring
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use of a model to objectively evaluate and "score" credit applications and credit bureau data in order to assess likely future performance.
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Bankruptcy
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a proceeding in U.S. Bankruptcy Court that may legally release a person from repaying depts owed.
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Change-off
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balence on 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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Consumer Credit File
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Credit bureau on a given individual
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Credit Bureau
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Credit reporting agency that is a clearhouse for information on the credit rating of individuals or firms
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Credit bureau risk score
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type of credit score based on solely on data stored at the major credit bureaus
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Credit History
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record of how a consumer has repaid credit obligations in the past
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Credit Obligation
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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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Information communitcated by a credit reporting agency that bears on a consumer's credit standing
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Credit Risk
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likelihood that an individual will pay his or her credit obligations as agreed
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Credit Score
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often used to refer to credit bureau risk scores
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Default
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failure to make a loan or debt payment even when due
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Delinquent
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Failure to deliver even the minimum payment on aloan or debt payment on or before the time agreed
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Equal Credit Opportunity Act (ECOA)
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Fedral legislation that prohibits descrimination in credit
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Fair Credit Reporting Act (FCRA)
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Federal legislation that promotes accuracy, confidentiality and proper use of information in the files of every "consumer reproting agency"
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FICO scores
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Credit bureau risk scores produced from models developed by Fair Issac Corporation are commonly know as FICO scored
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Inquiry
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item on a consumer's credit report that shows that somone with a "permissible purpose" ha previously requested a copy of tha consumer's 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 insureance rating based solely on credit bureau data stored at the major credit bureau
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Late payment
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delinquent payment
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Revolving debt
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Debt owed on an account that the borrower can repeatedly used and pay back without having to reapply evertime credit is used
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Scoring Model
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statistical formula that is used, usually with the help of computers, to estimate future performance of prospective borrowers and existing customers.
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