Glossary

A negative item on a credit report that indicates that a debt has not been paid and has been reported as unpaid for a length

Once a loan is declared default, a loan can be sold to another lender or collection agency who will have a different interest rate.

The amount of money a debtor still contractually owes after the creditor puts the proceeds of sold collateral toward the unpaid debt.

Delinquency is being late making your payments on a debt that you owe. This can be a loan, credit card, or other debt. This reflects

When a person fails to submit a payment for a debt on time. Being delinquent reflects poorly on your credit.

A check that can be issued by a bank, rather than an individual. These types of checks don’t need a signature in order to cash

When money is disbursed or paid out, it is referred to as disbursement. It also means creditors directly receive your money each month in a

When a court orders the release of debt from the debtor. There are certain types of debts that do not qualify for discharge including alimony,

Making sure that a person is able to view their full credit history. This is required by the FRCA. Credit history can be viewed online,