Charge-off - A lender's declaration of a balance as uncollectible bad debt and/or the process of writing off uncollected loans from account receivable books.

Chargeback - The reversal of a credit card transaction in which the merchant is required to pay back the cardholder after the original transactions.

Collateral - Property that backs up a loan and becomes the lender's if the loan is not paid. Also see security.

Collection - An account in default for which the creditor attempts to receive payment. Indicates any account/trade that reflects a collection status, special comment, narrative, remarks, or collection segment 10.

Co-maker - A second person who enters into a loan agreement, guaranteeing to make the payments if the borrower defaults. (People who have not established credit or people with poor credit ratings may need cosigners). Also see cosigner.

Compliance case - a chargeback in which the issuing bank forces the chargeback because a card transaction was not processed according to specification/regulations.

Consumer - Any private individual.

Consumer credit - Credit extended to a person primarily for personal, family or household purposes.

Contractually liable - Those parties who are expressly obligated to repay all debts arising on an account bt reason of an agreement to that effect.

Cosigner - A second person who enters into a loan agreement, guaranteeing to make the payments if the borrower defaults. (People who have not established credit or people with poor credit ratings may need cosigners).

Credit - The right granted by a creditor to an applicant to defer payment of a debt, incur debt and defer its payment or purchase property or services and defer payment.

Credit bureau - A reporting agency that assembles information on borrowers to help lenders evaluate credit worthiness. Borrowers are entitled to see their credit report and dispute or add to the information they feel is erroneous. Objective(s) must be filled in writing with the report. Also see credit report.

Credit card - Any card, plate, coupon book or other single credit device that may be used from time to time to obtain money, property or services on credit.

Credit disability and credit life insurance - Optional insurance that (a) makes loan payments if an illness or accident hinders an account holder to earn income or (b) pays the remaining balance if an account holder dies. Generally, this insurance is included in the monthly payments.

Credit limit - The maximum, outstanding dollar amount the cardholder (account holder) is permitted to incur at any time.

Credit line - The dollar amount a consumer has available for use.

Credit report - A report by a credit bureau of an individual's available credit and payment history, including on-time payments, late payments, and the number of times a loan payment was missed. Judgment liens to collect a debt, bankruptcy petitions, and tax liens may also be included. Credit reports retain adverse credit information for seven years and bankruptcy petitions for ten years. Federal law requires credit-reporting agencies to allow consumers to inspect their credit report and submit disagreements in writing. Credit reports are requested by lenders or the individual named in the report.

Credit scoring - An objective methodology widely used by credit grantors to make credit decisions.

Credit transaction - Every aspect of an applicant's dealings with a creditor concerning an application for credit or an extension of existing credit, including, but not limited to information requirements; investigation procedure; standards of creditworthiness; terms of credit; furnishing of credit information, revocation, alteration, or termination of credit; and collection procedures.

Credit union - A cooperative association that offers loans to its members at low interest rates.

Creditor - A person who, in the ordinary course of business, (a) regularly participates in the decision of whether or not to extend credit, including a creditor's assignee, transferee, or subrogee who so participates and (b) regularly refers applicants or prospective applicants to creditors, or selects creditors to whom request for credit may be made. (A person is not a creditor concerning any violation of the Act or this regulation

Date opened - The date when a credit agreement was originally initiated with a credit grantor.

Date reported - The date when a listing of the credit status of an account is place on the credit profile.

Delinquency - Failure to make a loan payment on time. Delinquent loan payments may be subject to a late fee, expressed as a flat fee or a percentage of the amount due.

Delinquent - A rating assigned to accounts when the consumer fails to make the obligatory payments. An account is delinquent when the credit obligations (payments) are not meeting the current definition (for example, an account that is 30 days delinquent has missed one month of payments; an account that is 60 days delinquent has missed two months of payments; etc).

Derogatory - A rating assigned to accounts when the consumer fails to make the obligatory payments and is turned over for special handling, such as collections, charge off, repossession, etc.

Disclosure statement - A document required by federal or state laws that is prepared by lenders to provide their customers with an explanation of their credit terms, such as the Annual Percentage Rate (APR), finance charge, method of interest rate computation, payment schedule and minimum monthly payment, periodic rate, principal and other fees associated with the loan.

Dispute - To question statements placed on a credit profile (short form codes) by either the consumer or the creditor in relation to a tradeline.