APR
An annual measure of borrowing cost that includes interest and certain fees. Compare the lender’s actual disclosures.
Amount financed
The amount of credit supplied under the financing agreement; it can differ from the vehicle’s cash price.
Balance
The amount shown as owed at a particular time. A reported balance may reflect an earlier reporting date.
Collection account
An account associated with efforts to collect a debt. Its reporting details and the debt’s validity are separate questions.
Credit bureau
A consumer reporting company that assembles credit information into reports.
Credit limit
The maximum revolving credit available under an account’s terms.
Credit report
A record of reported account and related information; it isn't itself a score.
Credit score
A number calculated from report information using a scoring model. Different models can produce different numbers.
Debt management plan
An organized repayment arrangement typically offered through a credit counseling agency. Ask about eligibility, fees, and consequences.
Debt settlement
An agreement to resolve a debt under negotiated terms, potentially for less than the balance claimed. It has risks and possible tax consequences.
Debt validation
The collector-notice and verification framework; timely written disputes can trigger specific protections.
Delinquency
Failure to make a payment as required. A partial payment may not cure it.
Finance charge
The cost of credit disclosed under the applicable agreement, including interest and certain fees.
Furnisher
A company that supplies information to a credit reporting company.
Hard inquiry
An inquiry commonly associated with a credit application. It may affect scores.
Hardship arrangement
A creditor-approved change or relief arrangement whose actual written terms determine its effect.
Installment loan
Borrowing repaid over a schedule, such as many auto loans.
Minimum payment
The required periodic amount under an account’s current terms; paying only this amount may prolong repayment.
Principal
The borrowed amount apart from interest; confirm how extra payments are applied.
Security freeze
A restriction on access to a credit file for many new-credit checks. It doesn't erase history.
Soft inquiry
A type of report access that generally doesn't affect scores, such as checking your own report.
Statute of limitations
A legal time limit. Debt-collection litigation limits vary and differ from reporting periods.
Utilization
The ratio of reported revolving balances to limits. Overall and individual ratios can matter.
Verification
Information supporting a collector’s claim; a request doesn't automatically cancel a debt.
Negative equity
When a vehicle’s outstanding loan balance exceeds its value.