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Grace Period:
A time period allowed by creditors for repayment of a monthly obligation
(usually 20 days) where a card user will not be charged interest for
purchases made with credit if bills are paid on time.
Gross Income:
A person's income before deductions (taxes, Social Security, etc.)
Home Equity Loan:
A line of credit extended to a consumer based on the amount of equity
available in their home. Similar to a mortgage except no payment is due
unless the credit is used.
Judgment:
A court order to re-pay a past due debt. Lien Property is held until
payment of debt is made in full. If balance is not satisfied, the property
is sold and the proceeds will go to pay the outstanding debt.
Net Income:
A person's monthly earnings after tax and other deductions have been
removed.
Over-The-Limit Fee:
A penalization against the consumer for exceeding the amount of total
credit available on a given account. These fees are usually assessed based
on late fees which bring a total due balance over the consumer's granted
line of credit.
Re-age:
When a past due account is brought back to a current status by the
creditor. Most creditors will waive late and over-the-limit fees when an
is account is is re-aged. The affect of this is that the debtor does not
have to make the last several payments to catch-up with the account.
Repossession:
If someone defaults on a loan the creditor can take that item back since
the product was never actually "owned" by the consumer in the first place.
Secured:
A loan or line of credit backed by collateral, such as a mortgage, car
loan or secured credit card. If payments are not made, the collateral can
be repossessed. Sometimes, when an unsecured store card is used to
purchase an item from that store, the purchase itself is secured. This
means that if the creditor is not paid back, the item can simply be taken
back by the creditor.
Unsecured:
Any form of credit that does not have any form of collateral attached to
it.
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