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The Basics of Credit

Horizontales
Occurs when a borrower deeds over the property to the lender to avoid foreclosure.
This is a statistical number that reflects a Consumer’s creditworthiness and is based on credit history and is the most popular type.
This is when you “rent” an item rather than pay to own.
Also referred to as a short sale, this occurs when a borrower sells their property to a third party for less than the amount owed.
This is imposed by law upon property to secure the payment of delinquent taxes.
They prepare the credit report.
A request by an institution for credit report information from a credit reporting agency for a consumer.
It is open ended, usually with variable rates, with a pre-determined credit limit with payments calculated as a percentage based on the outstanding balance.
A legal procedure by which a lender seizes the property of a borrower in default and resells the home in order to satisfy the debt.
This is a court order to pay a specified sum of money. Most often it is the result of a loss of a lawsuit, non-payment of a creditor or other debt owed but not paid
Occurs when the creditor determines there is little or no likelihood that the debt will be collected and writes off the loan as an accounting measure.
Verticales
Typically has equal monthly payments of principle and interest where the loan fully amortizes.
The credit in-file report where the information from the 3 repositories has been combined into one single report.
A tradeline or other information on the credit report where the consumer disagrees with the accuracy of the reported information.
A tradeline or other debt that is not current but not yet reported as a collection account.
A seriously delinquent past due account, considered a bad debt, where repayment is actively pursued by a collection agency.
An individual credit account shown on the credit report.
Equifax, Experian and TransUnion are the 3 National ________.
Occurs when a consumer prohibits access to their credit information at one or more of the 3 national repositories.
The format of the credit report as received from Experian, Equifax and TransUnion.
Refers to the time passed since the completion of a significant derogatory credit event.
A legal procedure by which an individual (or business) is relieved of their financial liabilities.