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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 model to evaluate and "score" credit applications and credit bureau data in order to assess likely future performance.
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Bankrupcy
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a proceeding in US Bankruptcy Court that may lawfully release a person from paying 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 bad bebt.
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Collection
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attempted recovery of a past-due credit obligation
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Consumer Credit File
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a credit bureau record on a given individual.
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credit bureau
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a credit reporting agency that is a clearinghouse for information 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 how a consumer has repaid credit obligations in the past
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credit obligations
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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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information communicated by a credit reporting agency that bears on a consumers credit standing.
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credit risk
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the likelyhood that an individual will pay his or her credit obligations as agreed
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credit score
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used to refer to credit bureau risk scores. a model that pertains to the evaluated information on making a credit decision
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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 minium payment on a loan or debt payment on or before the time agreed.
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equal credit opportunity act
(ecoa) |
federal legislation that prohibits discrimination in credit. 1974
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fair credit reporting act
(fcra) |
federal legislation that promotes the accuracy, confidentiality and proper use of information in the files of every "consumer reporting agency"
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FICO scores
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model from FAIR ISSAC CORPORATION- scores that are used by lenders and others to assess the credit of borrowers in order to make a decision
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inquiry
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an item on a consumers credit report that shows that someone with a "permissable perpose" has previously requested a copy of the consumers credit 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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insurance rating based solely on credit bureau data 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 repeately 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 future perfomance of prospective borrowers and existing customers
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