Glossary of Credit Terms (U – Z)

Glossary - Common Credit Reports & Credit Scores TermsHere are definitions of key terms and phrases common to the credit reports and scores. Refer back to this glossary when you come across any jargon that leaves you puzzled.

To fast forward to a particular section of this glossary of credit terms, just click on a letter below for terms beginning with:

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Acronyms & Abbreviations


Unsecured Credit
Credit for which no collateral has been pledged. Loans made under this arrangement are sometimes called signature loans. In other words, a loan is granted based only on the customer’s words, through signing an agreement that the loan amount will be paid. See also Secured Credit.

Balance-to-Limit Ratio. The amount of money a person has in outstanding debt, compared to the amount of credit available on all of the individual’s credit cards and credit lines. The higher a person’s debt relative to available credit, the more risky the individual appears to potential lenders.
Common Synonyms: Credit Utilization/Credit Utilization Ratio/Debt-to-Available-Credit Ratio.

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Indicates a judgment that was rendered void or set aside.

Vantage/Vantage Score
A brand name for a Risk Scoring Model developed by the 3 major credit bureaus to compete with FICO credit score. See ../vantage-score for more information.

Variable Rate
An annual percentage rate (APR) that may change over time as the prime lending rate varies or according to your contract with the lender.

A process to determine whether data in a credit report is correct or not. See also Dispute.

Victim Statement
A statement that can be added to a consumer’s credit report to alert credit grantors that a consumer’s identification has been used fraudulently to obtain credit. The statement requests the credit grantor to contact the consumer by telephone before issuing credit. It remains on file for 7 years unless the consumer requests that it be removed.

Voluntary Bankruptcy
If a consumer files the bankruptcy on his own, it is known as voluntary bankruptcy.

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Wage Assignment
A signed agreement by a buyer or borrower, permitting a creditor to collect a certain portion of the debtor’s wages from an employer in the event of default.

This means a decision was made not to pursue a bankruptcy, a lien, etc. after court documents have been filed.

Writ of Replevin
Legal document issued by a court authorizing repossession of security.

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