Debt Glossary for alphabet "C"

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Cash-out Refinance:
In cash-out refinancing, the new loan amount exceeds the existing mortgage and thus leaves the borrower with some extra cash.
Closing:
It's the meeting that takes place at the final stage of property transaction when the property rights get legally transferred from one party to other. Normally, the buyer lender and the seller are the parties involved in it.
Collateral:
It is the asset or the property against which the loan is offered. The lender is authorized to seize the collateral if the borrower fails to repay the loan.
Collection agency:
It's a company specialized in collecting debts. A collection agency is appointed by the creditor when a borrower defaults on a loan. The agency may earn in terms of fees or as percentage of the recovered amount.
Commitment:
It is the written document which describes the terms and conditions under which the loan was offered the lender to the borrower.
Cosigner:
A cosigner signs the loan document along with the borrower and assumes the responsibility of paying off the debt when the borrower defaults.
Credit:
It's a particular sum of money that is borrowed and becomes payable at a future date. Interest accrues on the amount over the period of the loan and the total sum of principal and interest become payable at the time of repayment.
Credit Bureau:
It is a private organization which collects and maintains information on individual's credit repayment history and supplies the same to creditors and banks upon request.
Credit card:
It offers the user a revolving line of credit and enables the user to purchase good and services without paying money upfront.
Credit history:
The overall record of your credit transactions. It shows the amount of money you borrowed, the lenders you have dealt with and the status of the accounts.
Credit limit:
It depicts the maximum amount that the customer can charge on his/her credit card.
Credit Ratio:
It represents the total installment payable in a month, expressed in terms of the net income of the debtor.
Credit Report:
The credit report consists of your personal credit history and updated financial position. Based on your credit history you'll get the credit score which helps in determining your credit worthiness.
Credit reporting company:
These companies compile information on your credit payment history. Creditors voluntarily submit updates to these companies and access the same when needed.
Credit Scoring System:
It is the statistical method which takes into account factors mentioned in the credit report to calculate the credit score of an individual.
Creditor:
Individuals and business organizations who lend money to consumers and earn in terms of interest.
Credit insurance:
Credit insurance helps in repaying the debt of the borrower in the event of his death, accident or disability.
Creditworthiness:
It describes risk of lending money to a consumer.
Consumer:
A person who purchases material goods for his personal use.
Consumer credit counseling service (CCCS):
These organizations help consumers in repaying debts through money management and well planned budgeting. These organizations operate in non-profit mode and are mainly funded by the creditors.
Credit repair companies:
These companies help customers in removing negative information from their credit report and improving their credit scores.
Credit grantor:
It is the individual or business which assumes risk of lending money or valuable property.
Credit type:
Credit type is correlated to your credit repayment history. If you have been timely with your repayments then you may get good rates, which would put you in the 'good' credit type.
Charge off:
It occurs when the lender considers a debt as uncollectible and reports it as loss for accounting purposes.

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06-20-2005, 10:55 PM

roxette

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Join Date: Mar 2005

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Debt Glossary for alphabet "C"

Hope everyone finds this resource useful.

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