Glossary Term D – 100 Best Credit Reports
Daily periodic rate
The annual percentage rate of credit measured as a daily amount. You can find the daily periodic rate by dividing the APR by 365.
The date that a specific credit account was terminated.
The date that a specific credit account was established.
A card issued by a bank that, when used, takes money directly out of your account from an ATM, or when making purchases at certain stores that accept them.
Someone who collects debts owed to others.
The act of taking out a second mortgage or home equity line of credit in order to pay off other loans. This is done in hope of lowering the consumer's total cost of credit through one debt instead of many smaller ones.
The total amount of income a person receives per month compared to the amount of debt a person has to pay per month. This is another way for creditors to determine creditworthiness.
An individual or organization who owes a creditor money because of a loan, mortgage, credit card, etc.
This is what happens when a debtor fails to meet financial obligations such as payments.
When loan payments have not been paid and are past their due date.
When a debtor is released from responsibility for a debt owed. This happens with some types of bankruptcy.
The income that remains after a consumer has paid for fixed monthly expenses.
This is when a judge rules against a consumer's petition for bankruptcy. It appears on credit reports as a dismissed bankruptcy. The consumer's debts remain outstanding.
All remaining income after taxes have been taken out.
The right of a consumer to question the accuracy of information in their credit report. This right is protected by the Fair Credit Reporting Act.
A partial cash payment made to something of larger cost such as a house or vehicle. Usually, the higher the down payment is, the lower the interest rate will be.