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.
- Underwriting
- The process of analyzing a loan application to determine the amount of risk involved in making the loan. Includes a review of the potential borrower's credit history and a judgment of the property value. Based on the determined risk, matches the applicant with appropriate rate and term or loan amount.
- Unsecured credit
- Credit for which no collateral has been pledged. Sometimes called signature loans.
- Unsecured Credit Cards
- Credit cards that are not secured by collateral. Customers qualify for such cards based on their credit history, their financial strength and their earnings potential.
- "Upside down"
- The position borrowers find themselves in when they owe more than their house is worth. Also known as "no equity". Borrowers become upside down in two ways: the market value of their house declines, or the loan amount rises, or both. See negative amortization.
- Usury
- Interest charged in excess of the legal rate established by law.
