Credit Scoring - Law Dictionary Search Results
Home Dictionary Name: credit scoringcredit score
credit score a score calculated by using a person's credit report to determine the likelihood of a loan being repaid on time. Scores range from about 360 - 840: a lower score meaning a person is a higher risk, while a higher score means that there is less risk. Source: U.S. Department of Housing and Urban Development ...
Credit scoring
Credit scoring, means a system which enables a credit institution to assess the credit worthiness and capacity of a borrower to repay his loan and advances and discharge his other obligations in respect of credit facility availed or to be availed by him [Credit Information Companies (Regulation) Act, 2005 (30 of 2005), s. 2(g)...
fico score
fico score FICO is an abbreviation for Fair Isaac Corporation and refers to a person's credit score based on credit history. Lenders and credit card companies use the number to decide if the person is likely to pay his or her bills. A credit score is evaluated using information from the three major credit bureaus and is usually between 300 and 850. Source: U.S. Department of Housing and Urban Development ...
mortgage score
mortgage score a score based on a combination of information about the borrower that is obtained from the loan application, the credit report, and property value information. The score is a comprehensive analysis of the borrower's ability to repay a mortgage loan and manage credit. Source: U.S. Department of Housing and Urban Development ...
risk scoring
risk scoring an automated way to analyze a credit report verses a manual review. It takes into account late payments, outstanding debt, credit experience, and number of inquiries in an unbiased manner. Source: U.S. Department of Housing and Urban Development ...
predictive variables
predictive variables The variables that are part of the formula comprising elements of a credit-scoring model. These variables are used to predict a borrower's future credit performance. Source: U.S. Department of Housing and Urban Development ...
Credit information
Credit information, means any information relating to (i) the amount and the nature of loans or advances, amounts outstanding under credit cards and other credit facilities granted or to be granted, by a credit institution or any borrower; (ii) the nature of security taken or proposed to be taken by a credit institution from any borrower for credit facilities granted or proposed to be granted to him; (iii) the guarantee furnished or any other non-fund based facility granted or proposed to be granted or proposed to be granted by a credit institution for any of its borrowers; (iv) the credit worthiness of any borrower of credit institution; (v) any other matter which the Reserve Bank, consider necessary for inclusion in the credit information to be collected and maintained by credit information companies, and specify, by notification, in this behalf [Credit Information Companies (Regulation) Act, 2005, s. 2(d)]....
letter of credit
letter of credit :a document issued to a beneficiary at the request of the issuer's customer in which the issuer (as a bank) promises to honor a demand for payment by the beneficiary in order to satisfy or secure the customer's debt compare guaranty NOTE: A letter of credit is usu. requested by a buyer of merchandise (the issuer's customer) to be issued to the seller (the beneficiary) in order to secure the payment for the merchandise. In effect the letter of credit is considered to extend a line of credit or substitute the issuer's credit for the customer's. commercial letter of credit : a letter of credit which is used to satisfy payment for merchandise and which usually requires the beneficiary to present a draft and some documentary proof (as of shipment or receipt of the merchandise) when making a demand for payment irrevocable letter of credit : a letter of credit which the issuer cannot revoke or modify without the consent of the issuer's customer or the beneficiary stan...
credit
credit 1 : recognition see also full faith and credit 2 a : the balance in an account which may be drawn upon and repaid later compare loan b : the use of resources (as money) in the present obtained by the debtor's promise to repay the creditor in the future usually with interest as compensation to the creditor and often secured by a pledge of property or the right to attach the debtor's income in case of a failure to repay see also consumer credit compare debt c : financial reputation [to borrow money on the of the United States "U.S. Constitution art. I"] d : letter of credit 3 a : a deduction from an expense or asset account b : a reduction of an amount otherwise due ;esp : tax credit [a for child-care expenses] compare deduction, exclusion, exemption vt 1 : to supply goods on credit to 2 : to trust in the truth of 3 a : to enter upon the credit side of an account b : to place an amount to the credit of [ his account with ten dollars] ...
unified credit
unified credit : a tax credit applied against the unified transfer tax that is a cumulative credit gradually reduced by the amount of credit allowed for gifts made in preceding calendar periods NOTE: The total unified credit allowed as of 1987 is $192,800. The amount of the credit to be used in each period cannot exceed that period's tax liability, and so the credit may be gradually used up over a period of years. The unified credit is phased out once the amount of taxable gifts rises above a certain level. ...
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