Debt Glossary for alphabet "F"

By Good Nelly

Ask Nelly

• Finance Charge:
  It is the cost of using credit. Finance charge includes interests and other fees.
• Fair Debt Collection Practices Act (fdcpa):
  This act safeguards customer’s interests, such that collectors refrain from using abusive methods while collecting debts.
• Fair, Isaac and Company:
  This company has developed the software which is now used in determining credit scores of borrowers.
• Fee Simple:
  It ensures absolute ownership of an individual over his estate. Here, the property owner holds the right of control over the estate and is free to use or transfer the rights of the property.
• FICO:
  It is the most popular method of determining credit score. The FICO score is developed by Fair Isaac and Co. and ranges between 300 and 850. But a score less than 620 can be termed as poor score and needs attention since based on this score the lenders would consider your loan applications. However, a score above 720 is normally considered as good.
• Fixed rate:
  It is the interest rate that remains fixed for the entire period of the loan.
• Fixed-rate Loans:
  With fixed rate loans the interest rate on the loan remains unchanged and hence the customer would have to make fixed payments towards it.
• Float:
  The time interval between the deposit of a check in a bank and its payment.
• Fixed APR:
  It is the annual percentage rate that remains fixed over a given period of time.
• Flexible payments:
  In contrast to fixed payments, flexible payments allow the customer to make variable payments at his convenience.
• Final discharge:
  This document is issued at the end of bankruptcy case and states that the bankruptcy is over and you are free from your debt obligations.
• Fair Credit Reporting Act (FCRA):
  The Fair Credit Reporting Act is a Federal law. It requires the creditor to report accurate information about a customer’s credit. Under the FCRA, customers can review their reports and also dispute inaccurate information.
• Foreclosure:
  It is a legal process in which the lender takes possession of the mortgaged property when the borrower fails to meet the contractual obligations and defaults on the loan as well. A foreclosure stays on a credit report for 7 years.
• Federal Trade Commission (FTC):
  It is a Federal agency responsible for protecting consumer rights and enforcing consumer-friendly laws like Fair Debt Collection Practices (FDCPA), Fair Credit Reporting Act (FCRA) and Fair Credit Billing Act (FCBA).