GLOSSARY

A
Amount past due
It is an amount that is due on a loan, credit account or other accounts but not paid, resulting in a delinquency. What is past due may be an entire payment or a portion of it.

Annual income
This is your total income in one year. For married couples, this is your total combined income in a year.

Annual interest rate
Also known as APR, it is the yearly interest rate on a loan or credit card.

Annual percentage rate (APR)
It is the rate of interest a lender charges on its loan over a period of 12 months.

Available Credit
It is the rate of interest a lender charges on its loan over a period of 12 months.

B
Bad debt
A debt that a lender has determined the borrower is not going to repay. Usually, this type of debt is written off by the lender.

Bad credit loan
This is a loan granted to a borrower regardless of his or her credit rating. In many cases, lenders do not perform traditional credit check on this type of loan.

C
Cash advance
This is a generic term used to describe a cash loan taken out against a borrower's line of credit or paycheck. Normally, this type of loan attracts a higher interest rate than other loans.

CFSA
CFSA stands for Community Financial Services Association. It is a trade advocacy organization for payday lenders. It also promotes fair lending among its members through its Code of Best Business Practices.

Consumer
This is a buyer or user of goods and services. For example, a borrower is a consumer of loan or financial services.

Consumer credit counseling service
A suite of financial services offered by many companies that includes debt consolidation, debt settlement, money management, credit repair, etc. These services are offered both non-profit and for-profit organizations.

Consumer credit information
Also known as a credit report is a factual record of your credit activities for seven years. It includes your payment history for seven years, public record history for ten years as well as your name and address history.

Credit
Provision of funds by a lender based on the borrower's ability to repay at a future date. It is also a measure of a consumer's trustworthiness.

Credit account
Any loan or debt listed on your credit report is considered a credit account.

Credit bureau
Also known as a credit reporting agency, this is a company that main
tains consumers' credit files and provides credit information to lenders and other authorized users as well as to respective consumers. The three largest credit reporting companies are Experian, Equifax and TransUnion.

Credit history
A record of how a person has borrowed and repaid debts over a period of time, usually 7 years.

Credit limit
The maximum amount an individual or business can borrow on a specific account.

Credit line
The maximum dollar amount that can be borrowed on a credit card or loan account.

Credit report
A report containing information about a consumer's identity, credit transactions, consumers statements and previous inquiries about that file, some court actions, etc.

Credit scores
A credit score summarizes your credit history into a number that defines how responsible you have been with your past credit accounts and loans. These scores help predict how likely you are to pay your loans or credit cards in the future.

Creditor
Is one who extends credit to consumers. A creditor is also known as a lender.

D
Debt
A specified sum of money that is legally owed by one to another.

Default
Failure to repay your loan or other credit accounts as agreed to.

Due date
This is the date your loan or other credit account payment is due. It is also used to refer to the date when your regular bills are to be paid.

Delinquent
It is a bill, loan, payment installment or an account that is overdue. How much time it takes to classify an account as delinquent depends on individual lender's policy

E
Equifax
One of the three credit reporting bureaus, headquartered in Atlanta, GA. The other two are
Experian and TransUnion.

Experian
This is one of the three major credit reporting bureaus. The other two are Equifax and TransUnion.

F
Fair debt collection practices act (FDCPA)
A federal law prohibiting abusive and unfair debt collection practices.

Faxless loan
A loan requiring no faxing of documents for approval

Federal trade commission (FTC)
A federal agency which administers and enforces rules to prevent unfair business practices.

Finance charge
Interest or fee charged by a lender. It may be a flat fee or calculated based on the account balance each month.

Financial institution
A company such as a bank whose primary business and function is to accept/borrow money from the public and invest it in financial assets such as stocks, bonds, and loans to consumers.

FISCA
FISCA stands for Financial Service Center of America. It is a trade organization representing financial service providers in local communities like check cashers, payday lenders, etc.

Fraud
It is the abuse or misuse of someone's rights or property. For example, it is considered a fraud if a person, you know or don't know, uses your credit card to make a purchase without your permission.

G
Grace period
A grace period is the time you have before a credit card company starts charging you interest on your new purchases usually a period of 20 to 25 days. Payday lenders do not offer grace periods.

Installment loan
This is a loan paid back with interest in equal monthly payments over a period of time.

Instant loan
It is a loan with fast approval rate. Cash loans and advances are examples of this type of loan.

Lender
A person or company that makes money available to borrowers for a given period of time. The borrower is obliged to repay the loan with interest at a certain date in the future.

Loan 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.

Loan extension or refinancing
Requesting and being allowed more time to repay your loan. It may also mean using the proceeds of a new loan to pay off the balance of an existing loan.

Loan payment
Payments you make to your creditor on a loan. It includes both principal and interest charges.

Loan term
The length of time you have to pay back a loan.

Overdue
An outstanding bill or account not paid on the due date.

Overnight loan
This is a small cash loan like payday advance for which funds are made available to borrowers within 24 hours after approval is given.

Past due Bill
An account reflecting late payments or payments received after due date.

Payday loan
A short-term, small cash loan repayable on a borrower's next payday. It is also called payday cash advance or paycheck loan.

Payment option
Different methods for repaying a loan.

Personal information
This includes your name (and any name variations), driver's license number, Social Security number, date and year of birth, spouse's name, employers, personal phone numbers and information about your residence. Your credit report has a personal information section containing information reported by your creditors.

Principal
It is amount of debt you owe, not including interest. It is also the face value of a note, mortgage, etc.

Principal payment
Total principal paid per month on your mortgage or other loans.

Q
Qualifying income
Minimum monthly income range required to qualify for a loan or credit card.

R
Rollover
This term is usually used to refer to a privilege granted to payday loan borrowers who cannot repay their loans in full on the due date. Rollovers allow such borrowers to extend their loans for another two weeks. Payday lenders usually charge additional fee for rollovers.

Same-day loan
A quick loan that is approved and funded on the same day.

Security alert
A statement that is added to one's credit report when a credit bureau is notified that the consumer may be a victim of fraud. It remains on file for 90 days.