PF 6.01: Credit Reports and Scores

Goods, services and/or money received in exchange for a promise to pay back  at a future date.

• Promise
• Credit
• Credit Card
• Worthiness

A numerical summary of your credit history that indicates your credit worthiness

• Credit Score

• Credit Report

A record of a person’s use of credit

• Credit Score

• Credit Report

When a borrower fails to keep up with mortgage payments and the lender takes possession of the property

• Forclosure
• Tax Lien

Credit established in advance so that a borrower does not have to apply each time new credit is desired.
Also known as revolving credit

• Open End Credit
• Closed End Credit

A loan of a certain amount of money that a borrower must repay in a specified number of equal payments.
Also known as installment credit

• Open End Credit
• Closed End Credit

Businesses hired by lenders to pursue payments on debts that borrowers have not paid back

• Credit Reporting Agency
• Collection Agency

A person or organization who makes funds available for others to borrow

• Borrower
• Lender

Someone who receives something with a promise to return it or its equivalent

• Borrower
• Lender

A person who is equally responsible for paying back debt under the credit terms

• Parent

• Guardian

• Co-Signer

• Creditor