A loan calculated so that all the finance charges and other creditor expenses are deducted before the consumer receives the principal.

The cost of credit at a yearly rate. Knowing the APR allows you to effectively compare loans, even when they are structured differently.

A final payment at the end of a loan term that is considerably larger than the regular periodic payments.

A Bankruptcy is an official legal declaration that one is unable to pay their debts, and under the law is seeking legal protection from creditors. There are different types of Bankruptcy protection agreements, the most common of which are called Chapter 7 and Chapter 13. Many people unnecessarily rush into Bankruptcy without having all of the facts. Congress has recently favored creditors by passing legislation making Bankruptcy protection more difficult for the average american. A Bankruptcy is the single most damaging listing a credit report can show, much like a nuclear bomb going off on your credit report. RMCA has successfully disputed thousands and thousands of Bankruptcies, both chapter 7 and 13.

A cash loan taken out on a credit card. Interest for cash advances is usually higher than it is for purchases, a transaction fee may apply, and the grace period may be waived.

When a creditor sells a delinquent account to an independent collection agency, the account is considered 'charged-off' by the creditor. Your credit report will label the account as a 'Charge-Off'. The collection agency will then typically report a Collection Account to your credit report as well. The creditor will cease all attempts to collect on the account because they no longer own the debt. Usually a creditor then will seek to claim the remaining unpaid debt against their taxes as a business loss. Charge-offs are extremely bad for your credit score and usually occur with unsecured loans such as credit card debt. RMCA has successfully disputed thousands and thousands of Charge-Offs.

Typically, an account goes into collections after it has gone unpaid for 90 days or more. Usually the creditor will enlist the help of an independent collection agency after their in-house attempts to collect on the account have failed. Sometimes a creditor may even sell the account to a collection agency for a fraction of the amount owed. The collection agency is then entitled to 100% of the money they receive and will report a separate Collection Account to your credit report to represent their effort. Note: the same account will therefore be listed twice on your report - once by the creditor, and again by the collection agency. After being sold by the creditor the same account may be sold again and again from one collection agency to another and each will usually register a new collection account on your credit report. You have substantial legal protection to shield you from the harassment of collection agencies. RMCA has successfully disputed thousands and thousands of Collection Accounts.

A loan usually obtained for the purpose of reducing the amount of the payments of bills owing by consolidating the bills into one loan payment. The consumer pays off several bills with the proceeds from one loan and is left with one consolidated monthly payment.

The promise to pay in the future in order to buy or borrow in the present. The right to defer payment of debt.

A credit bureau keeps a record of your credit history for any card or loan issuer to review when considering your application for credit. The three major credit-reporting agencies in the United States are Equifax, Experian (formerly TRW) and Trans Union.

Any card given to you buy a lender that may be used repeatedly to borrow money or buy goods and services on credit.

Advice given by professional counselors to people about how to use credit responsibly and how to get out of serious debt.

Record of how a consumer has paid credit accounts in the past, used as a guide to determine whether the consumer is likely to pay accounts on time in the future.

The maximum amount of money you can charge on a particular credit account.

A summary of your recent credit history plus additional facts about you, including your age, address, marital status, employment history and other details that will help creditors judge your creditworthiness.

A computer-generated number, based on a statistical model, that summarizes an individual's credit record and predicts the likelihood that a borrower will repay future obligations.

The daily periodic rate is your annual interest rate expressed on a daily basis. It equals 1/365th of your annual percentage rate

Payment put off to a future date or extended over a period of time. Watch out for skip-a-month offers. Interest still accumulates when you skip a month.

A failure to deliver even the minimum payment on a loan or debt payment on or before the time agreed. Accounts are often referred to as 30, 60, 90 or 120 days delinquent because most lenders have monthly payment cycles.

Any fee representing the cost of credit, or the cost of borrowing credit. It is interest accrued on, and fees charged for, some forms of credit. It includes not only interest but other charges as well, such as financial transaction fees.

A traditional approach to determining the finance charge payable on an extension of credit. A predetermined and certain rate of interest is applied to the principal.

A legal action that terminates all ownership rights in a home when the home buyer fails to make the mortgage payments or is otherwise in default under the terms of the mortgage. A Foreclosure is when a creditor (usually a bank or mortgage company) uses the legal system to attempt to force the sale of property in order to liquidate the equity in the property to satisfy a debt. Foreclosures most commonly occur on real estate after a number of payments have been missed. Foreclosures have been occurring recently in record numbers throughout the United States, with millions more expected over the next few years. Questionable lending practices and the sub-prime mortgage industry have been chiefly to blame for the foreclosure epidemic throughout the US.

Legal process whereas a creditor has obtained judgment on a debt and may obtain full or partial payment by seizure of a portion of a debtor's assets (wages, bank account, etc...).

The period allowed to avoid any finance charges by paying off the balance in full before the due date.

A loan based on the difference of the amount you own on your home, and the home's current market value.