W!SE Terminology Review - Credit

A benefit of using credit where borrower can use the item purchased and pay for it later

The legal act of asking a court to declare one unable to pay debts owed to creditors

The amount of interest that a borrower will be charged on credit each year

A listing of all activity on a credit account during a billing cycle

Often used as the basis for calculating interest rates for good bank customers

Rule that states debt should not be more than x% of yearly and x% of monthly take home pay

The time between when a customer is billed and the date a payment is due (no interest charged)

To combine two or more debts into one

The amount borrowed or deposited

Occurs when collateral for a secured loan is taken back by a lender due to nonpayment 

The process a lender goes thru to take possession of a home when borrower doesn't pay mortgage

Allow a borrower to charge up to the limit, pay some and continue to charge without set ending

A score that indicates an individual's credit worthiness

Money borrowed on a credit card for a higher interest rate than regular purchases

The smallest amount that one can pay on an amount owed on a credit card or account

The maximum amount that a person can borrow on a credit account

A small loan company that specializes in lending $ to people who have bad credit or no credit

Occurs when a creditor can take the personal possessions of a borrower in payment of a debt

Money borrowed from a lender

Rewards offered by creditors to get borrowers to apply for credit with them

A plan to purchase an item with a set # of payments and a set interest rate

Credit type where borrower pays small amounts and lender keeps merchandise until its paid for

Occurs when a renter must leave a rental property for non-payment of rent

A court ruling that requires a person to pay damages to another person

A court ruling that requires that money be deducted from a persons paycheck to pay a debt

Loan made based solely on the borrower's credit rating 

Term for a credit card user that carries a balance on his/her card

An amount charged for setting up a loan (usually with a home loan/mortgage)

When a business contacts a credit bureau to get a person's credit report.

A fee charged for the privilege of carrying and using a particular credit card