Page 90 - Book1E

82
Glossary
Cosigner: A person who signs his or her name to a loan or credit application to help a borrower qualify for the loan or credit. If the borrower does not repay the loan, the cosigner becomes responsible for repayment.
Charge-off (also Write-off): Action taken by a creditor on an account the borrower is unable to repay. This action usually results in negative lines on a credit report for at least seven years.
Creditor (also Credit Grantor): Company or individual that provides financing to consumers, e.g., mortgage company, bank, credit card issuer.
Credit rating (Credit score): A score found by totaling points based on established credit factors and used to indicate a person’s payment history and credit worthiness.
Credit record: National grading system filed by consumer’s name, birth date, and social security number. For-profit companies providing these services include:
• Experian (888) 397-3742, www.experian.com
• TransUnion (800) 916-8800, www.transunion.com; and • Equifax (800) 685-1111, www.equifax.com.
Deed in lieu of foreclosure: A technique in which mortgage lenders allow borrowers to deed the property back to the lender instead of suffering a foreclosure sale.
Default judgment: A judgment made against an individual if he or she does not file a response to a lawsuit brought against him or her within the designated time period. If a default judgment is entered, the case is lost.
Deferment: The amount of time a borrower is allowed for nonpayment of a loan. Usually applies to student loans.
Deficiency Balance: The difference between the amount a creditor receives for the sale of foreclosed property and the amount the