Adverse Information

Any information included in your credit report that a creditor or other interested party would view as a reason to consider denying a loan or rejecting an applicant, such as past-due accounts.

Annual Fee

Yearly fee charged by some credit card issuers in exchange for providing access to certain credit card account privileges.

APR (Annual Percentage Rate)

The cost of your credit at a yearly rate.

Balance

The total amount owed.

Bankruptcy

A civil court proceeding in a district bankruptcy court that allows consumers legal relief from all or part of their debt. Bankruptcies appear on an individual's credit report for up to seven years.

Cash Advance

Money borrowed based on your available credit card line. Typically, the interest rate is higher than the rate charged on purchases and there may not be a grace period before you have to pay interest. Also, you may need to pay a fee for the cash advance (generally a percentage of the amount of the cash advance).

Charge Card

A form of credit card that requires payment in full each month.

Collection Account

A past-due account that is transferred to an inside or third-party collector in an attempt to recover the balance due.

Consumer Credit

Debt that has been incurred for a personal, family, or household purposes.

Co-signer

An individual who signs a loan agreement thereby agreeing to be responsible for repaying a debt if the primary borrower defaults.

Credit

The right granted by a creditor to an individual to defer payment of a debt, incur debt and defer its payment, or purchase property or services and defer payment.

Credit Card

A form of credit that enables a consumer to purchase goods and services and pay for them by making at least the required minimum monthly payments. Interest is charged on balances that are not paid in full at the end of the month. A form of revolving credit.

Credit History

A record of a consumer's credit behavior over an extended period of time, including credit account and payment activity.

Credit Limit

An amount set by a lender establishing the maximum level of credit that can be extended on a particular account.

Credit Report

A report from a credit reporting agency or a credit bureau that contains information such as an individual's address, bill payment history, and public information such as bankruptcy filings.

Credit Risk

A determination by a potential creditor of a consumer's likelihood of repaying a debt as agreed.

Credit Scoring System

A system that evaluates an applicant's creditworthiness based on key attributes of the applicant and aspects of the transaction. This system alone or in conjunction with additional information about the applicant, determines whether the applicant is deemed creditworthy.

Creditor

A business or person who extends credit or lends money to individuals or businesses.

Default

The failure to make a debt payment on time or the failure to comply with terms as agreed upon in the original credit agreement.

Delinquent

The failure of a consumer to pay a credit account on time as agreed.

Grace Period

A period of time in which interest does not accrue.

Open-End Credit

Credit extended in which a creditor may permit a borrower to make purchases or obtain loans directly from the creditor or indirectly by use of a credit card, check or other device.

Retail Card

A credit account that is issued by a retail company, such as a department store, or a group of associated retailers.

Secured Credit

A line of credit that is backed by property such as a home, auto, boat, or securities.

Unsecured Credit

A loan or line of credit that is backed only by a promise to pay.

NOTE - The definitions set forth above are provided as general information. Although these or similar defined terms may be found in credit card or other loan agreements, they should not be used to interpret any specific loan document or credit agreement. Please refer to the defined terms contained in the agreement that accompanied your loan check or credit card to understand and interpret the agreement that applies to your loan or credit card.