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.
- VA
- Department of Veterans Affairs. A federal agency which guarantees loans made to veterans; similar to mortgage insurance, a loan guarantee protects lenders against loss that may result from a borrower default.
- VA Loan
- A long term, low-or-no down payment loan guaranteed by the Department of Veterans Affairs. Restricted to individuals qualified by military service or other entitlements.
- VA Mortgage Funding Fee
- A premium of up to 1-7/8 percent (depending on the size of the down payment) paid on a fixed rate loan. On a $75,000 fixed-rate mortgage with no down payment, this would amount to $1,406 either paid at closing or added to the amount financed.
- Vacated
- A judgment that was rendered void or set aside.
- Variable Interest Rate
- With variable-rate cards, the APR changes when interest rates or other economic indicators change. Also known as a floating rate.
- Variable annuity
- An annuity where the amount of each periodic income payment may fluctuate as a result of variables such as a cost of living index, or scurities market value.
- Variable Rate Mortgage (VRM)
- See Adjustable Rate Mortgage
- Verification
- The process of confirming whether or not data contained in a personal credit report is correct or not. Initiated by consumers when they question or dispute some information in their files. Credit reporting agencies will accept authentic documentation from the consumer that will help in verification.
- Verification of Deposit
- A document signed by the borrower's financial institution verifying the status and balance of his/her financial accounts.
- Verification of Employment
- A document signed by the borrower's employer verifying his/her position and salary.
- Void(ed)
- Nullifies a transaction that has been recorded for settlement, but has not yet been settled. This removes the transaction from the batch of transactions to be settled.
- Void Transaction
- A deletion of the transaction information.
