Tips and Tools For Financial Success - Newton Free Library

Credit Terms and Definitions
Bankruptcy - the state of being insolvent or unable to pay your debts or creditors
His business failed and he went into bankruptcy.
Credit - money given in exchange for a promise for future repayment
The bank authorized a line of credit in the amount of $1,000.
Debt - the amount a borrower owes a person or institution
She accumulated a lot of debt from her student loans.
Disclosure - revelation or the act of exposure
The applicant needed to provide full disclosure about his credit history.
Dispute - a controversy or difference of opinion
The woman had a dispute with the store manager concerning a charge on her credit
card bill.
Fees - charges or a sum paid for a privilege
If you don’t pay your bill on time you may incur late fees.
Inquiry - the act of seeking information by questioning; an investigation
There was an inquiry about a loan that was in default.
Issuer - a legal entity that is authorized to offer a product or service
The bank on Main Street was the issuer of her first credit card.
Judgment - the ability to form an opinion and make a decision wisely
The loan officers needed to make a judgment about the customer’s credit history.
Lien - a legal claim on another’s property as a means to secure payment of a debt
The plumber placed a lien on their house because the homeowners did not pay for his repair work.
Payment - compensation or something given in return, such as money
Her mortgage payment is due on the first of each month.
Rejected - refused, denied or turned down
The applicant’s loan application was rejected because of a bad credit history.
Risk - the probability of loss or the possibility of misfortune
The bank takes a risk when making a loan.
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