A loan which the borrower must repay the amount in a specified number of equal payments.
When goods, services, or money is received in exchange for a promise to pay a definite sum of money at a future date.
Pre‐approved credit which can be used for the purchase of goods and services now and payment of them later.
When a lender does a comparison of information on a credit application to information on a credit report.
A record of a consumer's credit history that includes information about credit card use as well as the use of other types of credit.
A plastic card which looks like a credit card but is electronically connected to the cardholder's bank account.
The APR charged during the credit card's introductory period after a credit card account is opened.
Late payment fee
Fee charged when a credit card holder does not make the minimum monthly payment by the due date.
Extended as a line of credit established in advance so that the borrower does not have to apply for credit each time new credit is desired. Examples of this kind of credit include credit cards.
The interest rate charged on new transactions if the penalty terms in the credit card contract are triggered.
Businesses hired by lenders to pursue payments on debts that borrowers have not paid back according to the terms of the credit contract.
Credit Reporting Agencies
Agencies that create credit reports based on the information they receive from lenders regarding a borrower's account history with that lender. Sometimes called credit bureaus.
When a borrower fails to keep up with mortgage payments and the lender takes possession of the property.
A legal claim by a government entity to take an individual's property or income when their taxes are not paid in full.