A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Quick Credit Lesson #3:
Various changes of events in a client’s circumstances could signal the need for a current credit report. Clients attempting significant career changes or promotions or relocation may need to review any information that an employer might view as incriminating. Credit counselors working for debt management companies assists clients in reading their credit report. The credit report contains your personal information, negative and positive credits. Credit card issuers inform the credit bureaus of any negative information with the client’s credit cards.
Cash-advance Fee - A fee charged if you obtain a cash advance. This fee is in addition to the interest rate charged on the amount of the advance.
Charge Card - A card that requires payment in full upon receipt of the statement.
Charge Off - A term used when a creditor doesn’t expect to collect on a debt.
Co-Signer - Person who guarantees that a debt will be paid. If the borrower fails to meet payment, the co-signer becomes responsible.
Collateral - Property used to secure a loan or other obligation.
Collection Account - An account, which has been turned over to a collection department or agency because normal attempts to collect have not been successful.
Consolidation Loan - Loan obtained to help reduce the amount of payments on bills owed. This is done by combining the bills into one loan payment. The borrower then pays off several bills with the proceeds from the one loan.
Consumer - Person who purchases goods and services for their or their family’s personal use.
Consumer Credit Counseling Service - Usually these are nonprofit organizations that help consumers find a way to repay debts through careful budgeting. These organizations often request that creditor accept a longer pay-off period, which in turn, lowers monthly payments.
Credit - A promise to pay later for items purchased now.
Credit Bureau - Credit Bureaus collect and report vital facts about your financial habits; for instance, whether or not you pay your bills on time. These facts are then compiled into a "credit report," which can be accessed by potential creditors, employers, etc. The three major credit reporting agencies are Equifax, Experian and TransUnion You can contact them at the addresses below.
Equifax P.O. Box 105873 Atlanta, GA 30348 1-800-685-1111 http://www.equifax.com
Experian P.O. Box 2104 Allen, TX 75013-2140 1-800-682-7654 http://www.experian.com
Trans Union P.O. Box 390 Springfield, PA 19064 1-800-916-8800 http://www.transunion.com
Credit Card - A card that’s used instead of cash or checks. The borrower then must repay the credit card company the amount of the purchase plus any interest that’s accrued.
Credit History - A record of how the consumer has paid accounts in the past. This is usually used as a guide to determine whether a borrower is a "good risk".
Credit Limit - The maximum amount that can be charged on a credit card or account.
Credit Report - A record sent to prospective lenders, employers, and insurers that state the credit standing of a consumer.
