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A person who signs credit agreement, will take responsibility for paying
back the loan if the primary signer default
CO - SIGNER
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A score based off of your payment history reported to credit bureaus (Equifax, Experian, Transunion), its a three digit number from 300 to 900 and tells a lender how reliable you are as a borrower
Credit Score
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A payment put off to a future date for an extended period of time. For example: when you have a student loan and you don't have a job, you can defer your payments until you have a job.
Deferred Payment
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An account in which a payment has not been made or payments are behind or late.
Delinquent Account
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If a payment is not rcceived on the required due date there is a period of time in which the cardholder will not have any penalties, fees, or charges for a certain number of days (i.e. 5 days)
Grace Period
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Credit provided to two or more people (usually spouses) in which each party is equally responsible for the paying the debt back. Shows up on both credit reports.
Joint Credit
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A payment made after the required due date or the last day of a grace period.
Late Payment
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A card that debits money from a checking account and deducts your money almost automatically
Debit Card
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An interest rate on a credit account that does not change and stays the same for the duration of the account.
Fixed Interest Rate
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An interest rate that can go up or down depending on the market (prime rate) without notice or permission from the card holder.
Variable Interest Rate
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A fee that is charged when a payment is not made on time
Late Payment Fee
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The lowest possible and accepted payment a cardholder can make on a credit account which includes principle and interest.
Minimum Monthly Payment
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The amount of a credit account that has not been paid back and will continue to have interest charged to it.
Outstanding Balance
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When you charge or create a balance that is greater than the limit assigned by the creditor.
Over-The-Credit-Limit
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This is the interest rate for a credit account (credit cards) for a specific period of time. If you pay 36% for the APR your periodic rate is going to 3% (36% divide by the number of periods paid back in one year)
Periodic Rate
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Fee applied once a year (annually) for just for having an account with the lender or in some cases inactivity.
Annual Fee
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ANNUAL PERCENTAGE RATE:
cost of carrying a balance for one year equal to the amount owed in interest each month for 12 months
APR
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The amount of money left on a credit card.
Credit Limit - Account Balance = Avail. Credit
Available Credit
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A legal declaration of the inablility to pay debts, in which a persons debt is abolished, the creditor must charge off your account. However, the declaration stays on a persons credit report for 7 years.
Bankruptcy
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The number of days between each statement date - shows the charges, payments and finances charges for a specific period of time.
Billing Cycle
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A listing of all the charges, balance owed, payment required, credit limit available and payment due date.
Billing Statement
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A written statement of terms and conditions relating to a credit card account when the account is opened.
Cardholder Agreement
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A non profit organization that provides free or low cost counseling and guidance to people who are experiencing financial difficulty.
- CCCS
- Consumer Credit Counseling Services
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Companies that collects and sells credit information about how well people manage their debt. The only sell information to accredited agencies (banks, credit unions, and lenders).
Credit Bureau
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Record of how people manage their debts. Includes how well accounts are paid, how much debt a person has can include any backruptcies or judgements.
Credit History
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The maximum amount a creditor will let you spend.
Credit Limit
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When a borrower supplies some sort of collateral (car, cash, asset) to secure a loan with a lender. Usually in the case of extremely large loans, or people who have bad credit or little credit history.
Secured Line of Credit
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A loan given on approval based alone on someones credit history.
Unsecured Line of Credit
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A line of credit in which the borrower can charge and pay on the account for any given amount of time. Example - Credit Cards
Revolving Credit
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A loan given for a specific amount of money with equal payments due on a spefic day until the loan is paid in full. Example - Car Loan
Installment Loans
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