Glossary of Terms
Credit Glossary
It's hard enough trying to stay on top of your credit let alone learn the industry lingo. We've compiled a glossary of industry terms to help you stay ahead of the curve when dealing with your credit, auto loans, home loans, debt, and savings.
- Offer
- Indication by a potential buyer of the willingness to purchase a home at a specific price; generally put forth in writing.
- Oniomania
- Compulsive shopping; excessive, uncontrollable urge to buy things
- Opt Out
- The ability of a consumer to notify credit reporting agencies, direct marketers and list compilers to remove their name from all future lists. Consumers may opt out of pre-screened lists for credit and insurance offers by calling 1.888.567.8688.
- Option ARM
- Mortgages permitting the borrower, in some situations, to make minimum payments less than the interest charged. The unpaid interest is added to the loan balance, so the amount owed keeps rising. See recast.
- Origination
- The process of preparing, submitting and evaluating a loan application. Generally includes a credit check, verification of employment and a property appraisal.
- Origination fee
- The charge for originating a loan. Usually calculated as a percentage of the face value of the loan, and paid at closing.
- Over-limit
- A cardholder account that has surpassed its credit limit with a transaction. A cardholder balance that exceeds the account's credit limit.
- Over-limit fee
- A fee charged when the account balance exceeds the credit limit.
- Owner financing
- A property purchase transaction in which the party selling the property provides all or part of the financing.
