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Contractual Obligation
A contractual obligation is where the
borrower is legally accountable to pay back money borrowed from a lender.
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Co-Owner
A co-owner is someone who has equal ownership of the vehicle with
another individual.
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Cosigner
A cosigner is someone who takes equal financial responsibility
for a loan. Usually someone would need a cosigner if they did not have enough credit
to support the loan they are trying to acquire.
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Credit
Credit is a mutual agreement between a lender and a borrower
that money will be loaned and then repaid.
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Credit Card
A credit card is a card that represents a certain amount of money that a lender is willing to loan the cardholder. The cardholder
can make purchases with this card up to the amount approved.
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Credit History
Credit history shows a person’s past experience
with debts.
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Credit Life Insurance
Credit life insurance pays of a borrower’s
debt in the event that they die.
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Credit Ratio - Credit Ratio is figured differently depending on
the loan. For a FHA/VA loan it is figured by taking the borrower’s monthly payment
and dividing it by there income after taxes. Credit ratio for a conventional loan
is figured by taking the amount of the monthly payments that the borrower owes and
dividing it by their monthly income before taxes.
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Credit Report
A credit report shows a person’s history of repaying
debts.
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Credit Score
A person’s credit score shows a lender how much
of a risk they are taking by lending money to the borrower. It shows a person’s
creditworthiness.
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Credit Bureau
The credit bureau is an agency that keeps track
of everyone’s credit history. The three major credit reporting agencies are:
Equifax®
P.O. Box 740241
Atlanta, GA 30374-0241
Phone: (800)-685-1111
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Trans Union®
P.O. Box 1000
Chester, PA 19022
Phone: (800) 916-8800
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Experian® (formerly TRW)
P.O. Box 2002
Allen, TX 75013
Phone: (888) 397-3742
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