Terms with Tag Credit
- Annual Crediting Cap — Bank,
- The highest rate that can be credited to an equity-indexed annuity in a year.
- Bad Credit — Bank,
- Someone who carries a higher credit risk.
- Bad Credit Loan — Bank,
- A loan taken out by someone with bad credit.
- Bankruptcy (BK) — Bank, 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,
➥ Formerly FCI (Fellow Credit Institute).
- 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.
- Combined Loan-to-Value (CLTV) — Bank, Very Important,
➥ A term used by mortgage lenders and mortgage underwriters.
- 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).
- Companies' Creditors Arrangement Act (CCAA) — Bank Est. 1985, Canada, Important,
➥ Available to insolvent corporations owing in excess of $5 million.
- A Canadian Act to facilitate compromises and arrangements between companies and their creditors to avoid bankruptcy, foreclosure, seizure of assets or employee job loss.
- Consolidated Credit Counseling Services of Canada (CCCSC) — Company Est. 2005, Canada,
- Consumer Credit — Bank,
- 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 — Bank,
- 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) — Bank, Very Important,
➥ A payment card that gives customers access to a revolving line of credit.
- 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.
- Credit History — Bank,
- 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 — Bank,
- The maximum amount of charges a cardholder may apply.
- Credit Line — Bank,
- The maximum money amount available in an open-end credit arrangement such as a credit card or overdraft protection.
- Credit Repository — Bank,
- Another term for a credit bureau.
- Credit Risk — Bank,
- 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 — Bank,
- 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 — Bank,
- How likely an individual or entity is to default on their debt.
- Creditor — Bank,
- One who is owed money.
- Creditor Insurance — Bank,
- Insurance that repays debt if the borrower cannot.
- Debt Service Ratio (DSR) — Acronym, Important,
- Debt to Income (DTI) — Acronym, Important,
➥ A ratio used by mortgage lending underwriters when determining an individual's credit worthiness and their ability to service a mortgage loan.
- The percentage of an individual's income that is used to repay debt.
- Documentary Credit — Bank,
- 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) — Bank Est. 1956, ➥ Introduced the FICO® Score used in credit reports.