click below
click below
Normal Size Small Size show me how
Credit Vocabulary
Term | Definition |
---|---|
Creditor | one to whom a debt is owed |
Capital | net worth : excess of assets over liabilities |
Collateral | property (such as securities) pledged by a borrower to protect the interests of the lender |
Principal | a capital sum earning interest, due as a debt, or used as a fund |
Finance Charge | the cost of consumer credit as a dollar amount |
Debt Collector | the process of pursuing payments of money or other agreed-upon value owed to a creditor |
Credit Breau | a company that collects information relating to the credit ratings of individuals and makes it available to credit card companies, financial institutions |
Character | the mental and moral qualities distinctive to an individual |
Credit Report | a record of a borrower's responsible repayment of debts |
Capacity | the maximum amount that something can contain |
Credit History | a record of a borrower's responsible repayment of debts |
Credit rating | an evaluation of the credit risk of a prospective debtor, predicting their ability to pay back the debt, and an implicit forecast of the likelihood of the debtor defaulting |
20/10 rule | total household debt (not including house payments) shouldn't exceed 20% of your net household income. |
Debtor | a person or institution that owes a sum of money |
Bankruptcy | the state of being completely lacking in a particular quality or value |
Unsecured loans | any type of debt or general obligation that is not protected by a guarantor, or collateralized by a lien on specific assets of the borrower in the case of a bankruptcy or liquidation or failure to meet the terms for repayment |
Reaffirmination | the action of reasserting or confirming something. |
Involuntary bankruptcy | a legal proceeding through which creditors request that a person or business go into bankruptcy |
Voluntary bankruptcy | a bankruptcy proceeding commenced by the debtor |
discharged debts | releases the debtor from personal liability for certain specified types of debts |
liquidation | the process in accounting by which a company is brought to an end in Canada, United Kingdom, United States, Ireland, Australia, New Zealand, Italy, and many other countries |
reorganization | the action or process of changing the way in which something is organized |