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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 objectvely evaluate and "score credit applications and crdit bureau data in order to access likely future performance. Scores help business make decisions such as weather to accept or decline the application.
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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. Credit reports nomramally include bankruptcy for up to 10 years
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Charge-off
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The balance on a credit obligation that the lender no longer expects to be repaid and writes as 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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A credit bureau record on a given indiviual. It may include: consumer name,address, Social Security Number, credit history, inquires, colection records, and public records such as bankruptcy filling tax liens.
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Credit Bureau
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A credit reporting agency that is clearing house for information on the credit rating individyual of firms. is often called "credit Repoatory" or a "consumer reporting agency". The three largest credit bureaus in the U.S. are Equifax , Experian and TransUnion
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Cerdit Bureau Risk Score
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A type of credit score based solely on data stored at the major credit burueu. It offers a snapshot of a consomer risk at a particular point time, and rates the likelihood that the cusumer wil repay debts as agreed
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Credit History
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A record of how a cusumer had repaid credit obligations in the past
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Credit obligation
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An agreement by which a person legally bound to pay back borrowed mney or used credit
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Credit report
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Information commnciated by a credit reporting agency that bears on a consumer's credit standing. Most credit reports include: Name, address, credit history, inquires, collecton rcords, and any public records such as bankrutcy fillings and tax liens.
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Credit risk
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The likelihood that an idividual will pay his or her credit obligations as agreed. Borrowers who are maore likely to pay as agreed pose less risk to creditors and lendors.
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Credit score
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This term is often used to refer to credit bureau trisk scores. It broadly refers to a number genreated by a statistical model which used to objectively evalute information that pertains to making a credit decison
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Default
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A faluire to make a loan or debt payment when due. Usually an account is considered to be "in default" after being delinquent for several consecutive 30-day billing cycles
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Delinqent
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A faliure to deviler even the minimum payment on a loan or debt on or before the time agrred. Accounts are often reffered to as 30, 60, 90, or 120 days deliquent because most lendors have monthly biling cycles
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Equal Credit Opportunity Act
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Federal legislation that prohibits the accuracy, confidenfatility and proper use information in the files every "consumer reporting agency". Fcra was enacted in 1970.
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Fair credit reporting act
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federal legislation that promotes the accuracym confendiatlly and proper use of information in the files every "comsumer reporting agency" the Fcra was enacted in 1970
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Fico Scored
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Credit beauru risk scores produced from models developed by Fair Isacc Corparation are commonly known as FICO scores. Fair issac credit buearu scores are used to help make credit and marking decision. theses scores are dervied soley from credit bureau reports
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Iquiry
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An item on a comsumers credit report that shows that someone with a permisible purpose has previosly requested a copy of the customers report. Fair issac credit buearu risk scores taki into account only inquires resulting from a cunsumer's application for credit
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Installent
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Debt to be paid at regualr times over a specificed period. Examples include most mortage and auto loans.
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Insurance bureau score
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a insurance reting based soley on credit bureau data scored at the major credit bureaus. it offers a snapshot of an indivdiual insurance risk at particular point in time, and helps insures evaluate, new and renweal auto nad homeowner insurance policies
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Late payment
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a delquaent a faluire to deliver a loan or denbt payment on or before teh time agreed
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revovling debt
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debt owed on account that the borrowered can repratly use and pay back without having reapply every time sredit used. Crdit cars are mostly common type of revovling credit
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Scoring model
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A statscial formula that is used, usually with help of computers, to estimate future performance of prospective borrowers and existing customers. A scoring model calculates scored based on ata suc such as information on a customer credit report
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