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23 Cards in this Set
- Front
- Back
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Application scoring
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the useof a statistical 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 debts owed. usually include bankruptcies for up to 10 yrs.
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Charge-off
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te balance on a credit obligation that a lender no longer expects to be repaid and writes of as a bad debt
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Collection
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attempted recovery of a past-due credit obligation bya collection departement or agency
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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 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 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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information communicated by a credit reproting 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 mae a loan or debt payment when due.
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delinquent
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a failure to deliver even the minimun 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 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 coporation are commonly konwn as FICO scores
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inquiry
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an item on a consumers credit report that shows that someone with a permissible purpose has previously requires a copy of the consumers report
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installment debt
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debt to be paid at regualr times over a specidifed period
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insurace bureau score
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an insurance rating baded solely on credit bureau data stored at the major credit bureaus.
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late payment
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a delinquent payment; 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 statistical formula that is used to estimate future performance of prospective borrowes and existing customers.
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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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