Debt that has been determined uncollectible by the original creditor, usually after the debtor has become seriously delinquent. Typically charge-offs occur after six months of non-payment.

An individual other than the borrower who signs a promissory note and thereby assumes equal liability for it.

Assets pledged by a borrower to secure a loan or other credit, and subject to seizure in the event of default.

An organization that assists debtors in establishing a healthier financial picture. Typically, the focus is on establishing a workable budget and developing a reasonable debt repayment plan.

Debt incurred for consumable or depreciating assets that are not considered investments.

Also known as a Credit Reporting Agency or Consumer Reporting Agency, functions as a central repository of credit and collection records, payment history and certain legal information on consumers and businesses. The three major U.S. credit bureaus are Equifax, Experian and TransUnion. A fourth credit bureau, Dun and Bradstreet Corp., specializes in reporting business credit information exclusively.

Any card that may be used repeatedly to borrow money or buy products and services on credit. Issued by banks, savings and loans, retail stores, and other businesses.

A wide-ranging term for theft and fraud committed using a credit card or any similar payment mechanism as a fraudulent source of funds in a transaction. The purpose may be to obtain goods without paying, or to obtain unauthorized funds from an account. Credit card fraud is also an adjunct to identity theft.

The amount of credit a financial institution extends to a client. It also refers to the maximum amount a credit card company will allow someone to borrow on a single card.

A numeric expression of a person's creditworthiness that is used by lenders to access the likelihood that a person will repay his or her debts. A credit score is based on, among other things, a person's past credit history. It is a number between 300 and 850, the higher the number, the more creditworthy the person is deemed to be.

An organization that takes deposits and makes loans. Credit unions are non-profit and run as a co-operative by the depositors of the union.

A person or institution to whom money is owed by a debtor; someone to whom an obligation exists.