Terms with Tag Credit

  • Annual Crediting Cap Definition,
    • The highest rate that can be credited to an equity-indexed annuity in a year.
  • Bad Credit Definition,
    • Someone who carries a higher credit risk.
  • Bad Credit Loan Definition,
    • A loan taken out by someone with bad credit.
  • Bankruptcy (BK) Acronym, Important,
    • A court action under the Federal Bankruptcy Code by which a debtor's debts may be discharged, usually by transferring assets to a trustee, or rescheduled.
  • Certified Credit Professional (CCP) Acronym, Toronto, Ontario, Canada,
    • CCP is a credit management designation given out by the Credit Institute of Canada to its members with 5+ years of work experience who have successfully completed the CCP education courses.
    Formerly FCI (Fellow Credit Institute).
  • Combined Loan-to-Value (CLTV) Acronym, Very Important,
    • The connection between the unpaid principal balances of all the mortgages on a property (first and second usually) and the property's appraised value (or sales price, if it is lower).
    A term used by mortgage lenders and mortgage underwriters.
  • Companies' Creditors Arrangement Act (CCAA) Acronym, Canada, Important,
    • A Canadian Act to facilitate compromises and arrangements between companies and their creditors to avoid bankruptcy, foreclosure, seizure of assets or employee job loss.
    Available to insolvent corporations owing in excess of $5 million.
  • Consolidated Credit Counseling Services of Canada (CCCSC) Company Est. 2005, Canada,
    • Consumer Credit Definition,
      • Loans for personal use as opposed to business or commercial lending. These loans are typically unsecured and not backed by collateral.
    • Consumer Credit Association (CCA)Company, UK,
      • Credit Definition,
        • Money that a lender gives to a borrower on condition of repayment over a certain period.
      • Credit Appraisal and Rating Tool (CART)Acronym,
        • Credit Association of Canada (CAC)Company Est. 1944, Canada,
          • Credit Association of Greater Toronto (CAGT) Company, Toronto, Ontario, Canada,
            • Credit Card (CC) Acronym, Very Important,
              • A plastic card with a coded magnetic stripe that, when signed, entitles its bearer to a revolving line of credit, with a credit limit and interest rate determined by the borrower's income and credit report.
              A payment card that gives customers access to a revolving line of credit.
            • Credit History Definition,
              • A record of an individual's or company's past borrowing patterns and whether or not debts were repaid on time.
            • Credit Insurance Definition,
              • A policy that pays off the card debt should the borrower lose his job, die or become disabled. The structure of protection for a revolving credit card debt is calculated each month to cover only the debt that existed at the last billing cycle.
              • Insurance that covers borrowers and/or lenders if one is unable to repay debts.
            • Credit Life Insurance Definition,
              • Life insurance that repays the insured's debts upon their death. The death benefit decreases as the debt is paid off.
            • Credit Limit Definition,
              • The maximum amount of charges a cardholder may apply.
            • Credit Line Definition,
              • The maximum money amount available in an open-end credit arrangement such as a credit card or overdraft protection.
            • Credit Repository Definition,
              • Another term for a credit bureau.
            • Credit Risk Definition,
              • The risk of loss assumed under a financial contract that a borrower or a counter-party to a loan or other credit-related contract may default or fail to fulfill its obligations.
            • Credit Score Definition,
              • Also referred to as a 'Beacon Score' is a number, between 300 and 900, that reflects a person's credit history. Lenders calculate this number using a computer system as part of the process for assigning rates and terms to the loans they grant.
            • Credit Worthiness Definition,
              • How likely an individual or entity is to default on their debt.
            • Creditor Definition,
              • One who is owed money.
            • Creditor Insurance Definition,
              • Insurance that repays debt if the borrower cannot.
            • Debt Service Ratio (DSR)Acronym, Important,
              • Debt to Income (DTI) Acronym, Important,
                • The percentage of an individual's income that is used to repay debt.
                A ratio used by mortgage lending underwriters when determining an individual's credit worthiness and their ability to service a mortgage loan.
              • Documentary Credit Definition,
                • Written undertaking by a bank on behalf of an importer authorizing an exporter to draw drafts on the bank up to a specified amount under specific terms and conditions. They are used to facilitate international trade. In the United States these instruments are called commercial letters of credit.
              • Fair Isaac Corporation (FICO) Company Est. 1956,
                  Introduced the FICO® Score used in credit reports.
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