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The Expert can help you find information
to answer credit concerns.
Browse the glossary items listed below for information by topic:
A -
B - C -
D - E -
F - G -
H - I -
J - K -
L - M - N
- O -
P - Q -
R - S -
T - U -
V - W -
X - Y -
Z
A
 
Accelerated payment
Scheduled payment plus additional monthly payment. Leads to quicker payoff
of debt and less interest paid over life of loan.
Account condition
Each account on your Experian credit report has an "Account Condition."
It indicates the present state of the account (current, past due, etc.),
but does not indicate the payment history of the account.
Account monitoring
Once lenders make a yes decision, they might want to review your credit
report on a regular basis as they continue to manage their financial risk.
This monitoring, called account monitoring, scans credit reports for certain
risk characteristics as defined by the lender. Federal law specifically
permits lenders to monitor their accounts. When you signed your credit application,
you gave the lender permission to access your credit report from time to
time.
Accounts in good
standing
Lists credit items that are positive and should help your creditworthiness.
Account information includes the creditor's name and address, your account
number, the status (current, paid, closed, etc.), type and terms of the
account, and additional information as reported to us by your creditors.
Some creditors may not report to us, so all of your accounts may not be
listed.
Acquisition fee
Refers to the price to purchase another company or property.
Additional
monthly payment
The amount of your extra payment per month. This amount is in addition to
your minimum required payment. This payment will be used to reduce your
principal balance more quickly than if you only made your regular payment.
Adjustable
rate mortgage
A mortgage where the interest rate is liable to change over the term of
the loan and which is dependent on influences such as interest rates on
Treasury securities.
Adjustment
The percentage of debt to be repaid to B15credit grantors in a Chapter 13
bankruptcy.
Affiliate bureau
A bureau or credit reporting agency in partnership with Experian.
Affinity card
A card that is offered jointly by two organizations. One is a credit card
issuer and the other is a professional association, special interest group
or other non-bank company. For example, Citibank and American Airlines sponsor
the Citibank AAdvantage card.
AKA
Also Known As
Amortization
The process of fully paying off your debt by installments of principal and
earned interest over a fixed time.
Amount past due
Current amount delinquent on a loan.
Annual Fee
The once-a-year cost of owning a credit card. Some credit card providers
offer cards with no annual fee. The annual fee, with interest and other
fees are part of the total cost of credit.
Annual income
Your yearly income. For married couples this is your total combined yearly
income.
Annual interest
rate
The amount of interest you will pay over one year, expressed as a percentage
of your balance. Maximum interest rate is 20%.
Annual Percentage
Rate (APR)
A measure of how much interest credit will cost you, expressed as an annual
percentage.
Annual rate of return
The pretax rate of return on the amount you earn on savings and investments.
For example, the long-term rate of return for investments in the stocks
that make up the S&P 500 is about 11%. A savings account earns 2% to
5%.
Appraisal
An expert judgement or estimate of the quality or value of real estate,
made by an appraiser, as of a given date.
Appraisal fee
The charge for estimating the value of property offered as security.
Asset
Anything owned by an individual that has a cash value. This includes property,
goods, savings or investments.
Association code
Describes the consumer's relationship to an account (primary responsibility,
authorized users, etc.).
Authorized user
Person permitted by a credit cardholder to charge goods and services on
the cardholder's account. The card holder is responsible for charges made
by an authorized user.
Average daily
balance
The average daily balance is a method used to calculate finance charges
on an account. It is calculated by adding the outstanding balance on each
day in the billing period, and dividing that total by the number of days
in the billing period. The calculation includes new purchases and payments.
The daily interest rate is then applied to the daily balance to calculate
the finance charge.
B
Bad debt
A debt that a lender has determined the borrower is not going to repay.
Balance
The total amount of money owed on a loan or credit account, or the total
amount of money in a checking or savings account. In the case of a credit
card, it includes any unpaid balance from the previous month, new purchases, cash advances, and any charges such as an annual fee, late fee or interest.
Balance transfer
Moving a balance from one account to another. In the case of a credit account,
the balance (debt) is moved from one credit card to another. This is often
done with special checks or forms, or may be offered as an option on some
credit card applications. Some credit card issuers may offer temporary special
lower rates for balance transfers.
Balloon loan
A short term fixed-rate loan which involves small payments for a certain
period of time and one large payment for the remaining amount of the principal
at a time specified in the contract.
Balloon payment
Balloon loans require a single, lump sum payment at the end of the loan
term. This is usually a larger amount and the borrower often takes another
loan to make the payment.
Bank
An institution that accepts funds for deposits, lends money and may offer
other financial services such as insurance, brokerage or trust accounts.
Bankcard
A credit or debit card issued by a bank or other financial institution.
Bankruptcy - Chapter
11
A chapter of the Bankruptcy Code that provides a type of bankruptcy where
certain assets of the business or individual are sold to pay off a portion
of all existing debts.
Bankruptcy - Chapter
13
A type of bankruptcy usually used by businesses rather than individuals.
Used as an alternative to liquidation under Chapter 7.
Bankruptcy - Chapter
7
A type of bankruptcy where debtors repay debts according to a plan accepted
by the debtor, the creditors and the court. Plan payments usually come from
the debtor's future income and are paid to creditors through the court systems
and the bankruptcy trustee.
Bankruptcy code
Federal laws governing the conditions and procedures under which persons
and businesses that are unable to repay their debts can seek relief.
Better Business
Bureau
A voluntary, nonprofit group established by businesses to improve the code
of business practices and to define fair standards and ethics in the conduct
of the business. The Better Business Bureau is neither a government agency
nor a consumer group.
Big 3
The three largest credit reporting companies: Experian, Equifax and Trans
Union.
Bill
A list of charges for goods sold, work performed or services provided to
the person who has agreed to pay the costs.
Billing cycle
The number of days between statements (bills). This is generally about 25
days.
Budget
A financial plan itemizing income and expense during a projected time period.
Buydown
A lump sum payment made to the creditor by the borrower or by a third party
to reduce some or all of the consumer's debt. A buydown will reduce the
amount of remaining periodic payments to repay the indebtedness.
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