 Posted: Mon Jun 20, 2005 10:55 pm Subject: Debt Glossary for alphabet "C" |
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Hi,
I have enlisted all the major terminologies related to debt under alphabet C below -
1. Cash-out Refinance: This is a transaction in which the borrower receives additional cash he can use for any purpose. Cash-out refinance happens when a borrower receives a greater amount of money in a fresh loan when compared to the money he uses to pay his debts.
2. Closing: The meeting between the buyer, seller and lender. When the property and funds legally change hands there is a interaction or meeting between the buyer, seller, and the lender. This is known as closing or settlement.
3. Collateral: This is a piece of property or asset offered to support a loan. This property can be seized or taken away legally if you fail or can be seized if you default.
4. Collection Agency: When a borrower is unable to pay off his debts within the allotted time period, the original creditor appoints a company to collect the debts on his behalf. This company is known as the Collection Agency. The Collection Agency gets a certain percentage from the original creditor as their fees.
5. Commitment: A written document or agreement between a lender and a borrower on a loan amount or any monetary transactions. This document is backed by certain terms and policies for a stipulated period of time.
6. Cosigner: The cosigner is the third person other than the borrower and lender, who is a witness to the loan. He signs on doted lines and is equally responsible for your loan.
7. Credit: A particular sum of money granted by a creditor with the provisions for the borrower to pay in the future. It also means an amount of money an individual owes to a person or business.
8. Credit Bureau: An agency that maintains the records of your credit record and issues it to you when required.
9. Credit Card: Also known as plastic money, this is a card used to borrow money or buy goods for personal use.
10. Credit History: The overall financial record of the monetary transactions you dealt with. It shows the amount of money you borrowed, the amount you repaid and the sum which you still need to pay back.
11. Credit Limit: The maximum amount of money you may charge to a particular account. For example, if your credit limit on a credit card is $10,000, you total transaction cannot exceed $10,000.
12. Credit Ratio: The percentage calculated based on a debtor's monthly payable installment amount divided by his net earnings, is known as the credit ratio.
13. Credit Report: The credit report is a financial document which consists of a person's credit history and also reflects his updated financial position. A credit report determines an individual's credit worthiness. An individual can acquire his credit reports from credit bureaus.
14. Credit Reporting Company: These are companies that compile reports on an individual's credit history from multiple credit repositories and merge them into a wholesome credit report.
15. Credit Repository: Companies that gather financial information on an individual's credit history and gives the updated feedback to credit reporting companies.
16. Credit Scoring System: This is a highly statistical process used to grade individuals who have applied for credit, based on the various characteristics applicable to creditworthiness.
17. Credit Warranty: This is a written guarantee or commitment about the creditworthiness of the borrower given by the seller of the loan. The seller guarantees that the main intention of the borrower is to repay the loan under any condition and that he has got a good reputation in handling credit.
18. Creditor: A person or a financial house who lends money or you owe money.
19. Credit-related Insurance: This can be insurance related to health, life, or accident designed to repay the outstanding balance of debt.
20. Creditworthiness: Relates to past credit records and future ability to repay debts based on your current financial position.
22. Consumer: A person who purchases material goods for his personal use.
22. Consumer credit counseling Service (CCCS): Organizations which help consumers find a way to repay debts through careful budgeting and management of funds. These are usually nonprofit organizations, funded by creditors. By requesting that creditors accept a longer payoff period, the counseling services can often design a successful repayment plan.
23. Credit Repair Companies: The credit clinics can be in the form of any individual or company which helps debt sick people to recover from their financial crisis and take care to clean up their bad debts.
24. Credit Grantor: Person or any business house supplying consumer goods in credit system.
25. Credit type : This is a reference to the type of credit you are undergoing. This type of credit is highly related to your credit history. If you are regular and a punctual in your payments, you are supposed to have a ‘good' credit type.
Regards
Roxette
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roxette
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Joined: 18 Mar 2005
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