Page 59 - Book7E

CHAPTER 8
Glossary of Terms Balances: the amount of money still owed on a credit card or loan.
Bankruptcy: a legally declared inability or impairment of ability of an individual to pay his or her creditors.
Charge-off: a loan written off as uncollectible bad debt.
Closed account: an account for which the balance has been paid off completely and have requested the creditor to make the account no longer available for use; a creditor will usually require that a written request be sent to close an account.
Consumer advocacy group: organization to promote and protect the interests of the buying public.
Credit: the ability to purchase a product or service and make regular payments to the creditor until the item or service is fully paid for.
Credit Bureau: an organization that collects a consumer’s history of money borrowed and his or her repayment record, which is used in a mathematical formula to calculate the consumer’s credit worthiness, i.e., the risk that would be involved in loaning money to the consumer.
Credit limit: the maximum amount a consumer is allowed to borrow; this generally refers to the credit limit available on a credit card or home equity line of credit.
Credit Report: a record of an individual's or a company's past borrowing and repaying, including information about late payments and bankruptcy.
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