Glossary of Terms
- Rate earned on savings
- This is the rate you earn on short-term savings. For most people this is currently 4% to 5% annually.
- Rate of depreciation
- The rate of depreciation gauges how fast your new purchase - automobile, computer, etc. - will lose its market value. High depreciation rate is about 20% per year, medium is 15% per year and low is 10% per year.
- Rate cap
- The maximum amount that the interest rate on an adjustable rate mortgage can rise in a single year.
- Real estate secured debt
- Any debt that has been used to buy a home or has been secured by your home. For example, a home equity loan can be a real estate secured debt.
- Released
- This means that a lienLegal document used to create a security interest in another's property. has been satisfied and is no longer in effect.
- Repossession
- After a borrower is significantly behind on payments, a creditor takes possession of property pledged as collateral on a loan contract to pay off the remaining loan amount.
- Request an investigation
- If you believe that information on your report is inaccurate you can request an investigation of the information. The credit bureaus will ask the sources of the information to check their records at no cost to you. Incorrect information will be corrected information that cannot be verified will be deleted. Accurate information cannot be removed from your credit report. An investigation may take up to 30 days. When it is complete the credit bureau will send you the results.
- Request for your credit history
- This is a request for your personal credit report. Consumers' credit reports contain information a credit grantor can not see such as a detailed history of when your credit information is viewed by credit grantors or employers.
- Residual percent
- For leases, this is the remaining value of the property you are leasing at the end of the lease term. The higher this amount the lower your lease payment will be.
- Retail card
- A plastic payment card issued by a specific retailer or group of retailers for limited use at their own outlets.
- Revolving account
- An account from which credit is automatically available up to a predetermined maximum limit as long as a customer makes regular payments.
- Revolving debt
- Debt owned on an account that the borrower can repeatedly use and pay back without having to reapply every time credit is used. Credit cards are the most common type of revolving debt.
- Risk level
- In determining credit scores, lendersA person or company that offers to lend money to a borrower for a given period of time. place you in a risk category that compares you to a large number of consumers with similar credit histories. This allows lendersA person or company that offers to lend money to a borrower for a given period of time. to compare "apple to apples," ensuring that your credit behavior is judged in a context that is relevant and fair.
- Risk score models
- A tool used by credit grantors to predict future payment behavior of consumers.
