- A claim or debt for which a creditor holds no special assurance of payment, unlike a mortgage or lien; a debt for which credit was extended based solely upon the creditor's assessment of the debtor's future ability to pay.
not covered, unguaranteed
Related Terms and Acronyms
- Claim — Definition,
- A creditor's assertion of a right to payment from a debtor or the debtor's property.
- Credit Limit — Definition,
- The maximum amount of charges a cardholder may apply.
- 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.
- Debt — Definition,
- Money one person or firm owes to another person or firm.
- Forbearance — Definition,
- Delaying foreclosure, usually because the borrower has arranged to pay the amount in arrears.
- Foreclosure — Definition,
- The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt.
- Instalment — Definition,
- The regular periodic payment that a borrower agrees to make the lender.
- Lien — Definition,
- A legal hold or claim of a creditor on the property of another.