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23 Cards in this Set
- Front
- Back
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the use of a statistical model to objectively evaluate and "score" credit applications and credit bureau data in order to assess likely future performance. scores help busiensses make decisions such as whether to accept or decline the application.
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Application scoring
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a proceeding in U.S. Bankruptcy Court that may legally release a person from repaying debts owed. credit reports normally include bankruptcies for up to 10 yrs
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Bankruptcy
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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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Charge-off
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attempted recovery of a past-due credit obligation by a collection department or agency.
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Collection
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a credit bureau record on a given individual. it may include: consumer name, address, social number, credit history, inquiries, collection records, and public records such as bankruptcy filings and tax liens.
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Consumer Credit file
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a credit reporting agency taht is a clearinghouse for information on the credit rating of individuals or firms. is often called a "credit repository" or a "consumer reporting agency".
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Credit Bureau
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a type of credit score based solely on data stored at the major credit bureaus. it offers a snapshot of a consumer's credit risk at a particular point in time, and rates the likelihood that the consumer will repay debts as agreed
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Credit Bureau risk score
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a record of how a consumer has repaid credit obligations in teh past
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Credit History
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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 Obligation
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Information communicated by a credit reporting agency taht bears ona consumer's credit standing.
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Credit report
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the likelihood that an individual will pay his or her credit obligations as agreed. borrowers who are more likely to pay as agreed pose less risk to creditors and lenders
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credit risk
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often used to refer to credit bureau risk scores. refers to a number generated by a statistical model which is used to objectively evaluate information that pertains to making a credit decision
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credit score
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a failure 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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default
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a failure to deliver even teh minimum payment on a loan or debt payment on or before the time agreed. accounts are often referred to as 30, 60, 90 or 120 days delinquent because most lenders have monthly paymnet cycles
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delinquent
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federal legislation that promote sthe accuracy, confidentiality and proper use of information in teh files of every "consumer reporting agency". The FCRA was enacted in 1970
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Fair Credit Reporting Act (FCRA)
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federal legislation that prohibits discrimination in credit.
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Equal Credit Opportunity Act (ECOA)
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an item on a consumer's credit report taht shows that someone with a "permissible purpose" has previously requested a copy of the consumer's report.
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Inquiry
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debt to be paid at regular times over a specified period. examples include most mortgage and auto loans
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installment debt
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an insurance rating based solely on credit bureau data stored at the major credit bureaus. it offers a snapshot of an individiual's insurane risk at a particular point in time, and helps insures evaluate new and renewal auto and homeowner insurance policies
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insurance bureau score
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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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late payment
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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. credit cards at the most common type of revolving acount
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revolving debt
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a statistical formula that is used, usually with the help of computers, to estimate future performance of prospective borrowers and existing customers. a scoring model calculates scores based on data such as information on a consumer's credit report
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scoring model
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Fair Isaac Corporation; fair isaac credit bureau scores are used by lenders and others to assess the credit risk of prospective borrowers or existing customers, in order to help make credit and marketing decisions. these scores are derived solely from credit bureau reports
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FICO scores
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