Magnetic Strip - Your personal information pertaining to the services acquired which explain your limits and usage are encoded with an intention of providing security to you also. You may find it on your local store purchase card, credit card, etc.
Major Purchase - A purchase for a substantial amount of money, such as a car or refrigerator or home.
Market Value - How much something is worth in the marketplace. Market value can change based on supply and demand. In terms of automobiles, it is frequently the value of the automobile after a lease term is over.
MASTERCARD Symbol and Hologram - Your card is backed by the extensive network of MASTERCARD International and all merchant outlets and ATMs displaying this logo accept your card worldwide.
Medicare - A U.S. government program of hospital insurance and voluntary medical insurance for persons aged 65 and over, and for certain disabled persons under 65. A certain amount is withheld from your take-home pay to cover Medicare.
Medium High Risk - Medium high-risk consumers may have had delinquencies, charge-offs, or public record items, but not as many incidents as high-risk consumers. Although such consumers may still receive credit offers, they will most likely pay high interest rates because of their risk level.
Medium Low Risk - Medium low risk consumers have generally exhibited responsible credit behavior, but most likely have one or two delinquencies on their credit report.
Medium Risk - Medium risk consumers most likely have credit reports that have one or more delinquencies, high outstanding debt or relatively new credit accounts. Such consumers are usually able to obtain credit, but at higher interest rates than medium low or low risk consumers.
Minimum Payment - The minimum amount payable each month on your credit card balance.
Monthly PMI Payment - Monthly cost of Private Mortgage Insurance (PMI). For home loans secured with less than 20% down, PMI is commonly estimated at .5% of your loan balance each year and is used in this calculator. Monthly PMI is calculated by multiplying your starting loan balance by your PMI percent and dividing by 12. When your equity exceeds 20% of the original purchase price, your PMI payment should drop to zero. However, you should contact your lender when this occurs, as it will often not be removed automatically.
Mortgage - A written agreement to repay a loan. The agreement is secured by a mortgage, serves as proof of an indebtedness, and states the manner in which it shall be paid. The note states the actual amount of the debt that the mortgage secures and renders the mortgagor personally responsible for repayment. For more, see also Mortgage.
1st Mortgage - Also known as a "primary mortgage", has priority over the claims of subsequent lenders for the same property.
2nd Mortgage - Also called a "secondary mortgage" is a loan secured by mortgage or trust deed, which lien is "junior" to another mortgage or trust.
Mortgage Loan - Short-term or long-term use of property or money with the consent of the owner of the property or money. Usually the loan of money has an agreed-to repayment schedule and an interest charge. For more, see also Mortgage Loan.
Most Recent Date - The date your account information was most recently updated.
Net Home Price - Selling price of your home after subtracting any sales commissions.
Net House Payment - Your house payment minus the value of the tax deduction and principal payment.
Notice of Results - If you've requested an investigation of information on your credit report, you're entitled to receive a Notice of Results if your information was updated or deleted. You may request that the credit bureau send the corrected information in your credit history to credit grantors and employers who reviewed your information within a specific period of time. If your investigation does not result in a change to your credit history, the results will not be sent.
Number of Points Paid - The total number of points (prepaid interest) used to reduce the interest rate of your mortgage. Each point equals 1% of your mortgage balance.
Obsolescence - The term used to describe how long negative information should stay in a credit file before it is no longer considered relevant to the credit granting decision. The FCRA has determined the obsolescence period to be 10 years in the case of bankruptcy and 7 years in all other instances.
Opt-Out - A consumer request for removal of his/her name from future targeted marketing solicitations by direct marketers, banks and credit reporting agencies. Consumers may opt-out by calling 1-888-5OPTOUT.
Outstanding Debt - The total amount of debt you owe to your creditors.
Overdraft Checking - a checking account with a pre-approved line of open-end credit to avoid NSF checks and overdrafts.
Overdue - An outstanding bill or account not paid when due.
Paid Accounts - Total number of accounts that have been paid satisfactorily or paid after having been previously delinquent.
Past Due - An account reflecting late payments or payments received after an agreed upon time for settlement.
Payment Status - Reflects the history of payments on an account, including any delinquencies or late payments occurring during the previous seven years (current account, delinquent 30 days, current was 60 days past due, redeemed repossession, charge off - not paying, etc.).
Penalty Interest Rate - The rate at which penalty charges are calculated. It only applies to charge cards.
Permissible Purpose - As defined by the Federal Fair Credit Reporting Act, and various state regulators, the circumstances under which a third party may obtain a consumer credit report. Permissible purposes include credit transactions, employment purposes, insurance underwriting, government financial responsibility laws, court orders, subpoenas, written instructions of the consumer, or legitimate business needs.
Personal Information - The personal information section on your credit report includes your legal name (and any name variations), date and year of birth, employers, and information about your residence. This information is reported to the credit bureau by your creditors or other sources.
Personal Line of Credit - The maximum amount you can owe at any time, based on your income, debt and your credit history.
Personal Loan - Loan based on your income, debt and credit history.
Personal Statement - You can add a personal statement that will appear at the beginning of your credit report. Your personal statement may include a general explanation about the information on your report.
Petition - If a consumer files for bankruptcy, but a judge has not yet ruled that it can proceed, the process is known as a bankruptcy petition.
PITI Percent of Annual Income - The percent of your annual income the financial institution will allow you to use for your "Principal, Interest, Tax and Insurance" payment for your home. The customary amount of your income to be used for PITI is 28%, but will vary among lenders.
Post-dated Check - a check issued for a date later than the day on which it is written; the recipient should not deposit it prior to the written date.
Potentially Negative Items - Any information on your credit report that may have a negative impact on your ability to obtain credit. This may include your account information (type and terms), payment history, bankruptcy, lien, or judgment information.
Pre-Approved Credit Card - Pre-approved offers are mailed to your home because you meet the risk criteria of the company making the offer. A pre-approved offer is not guaranteed. You can still be turned down when you apply.
Pre-Payment - the ability to pay the balance of an extension of credit before it is due.
Pre-Screen - A process where lenders review consumer's credit information for a guaranteed credit offer. See also pre-approved.
Prime Rate - The interest rate a financial institution charges on loans to its largest and best corporate and other customers, often used as a basis to price other loans.
Principal - The amount of debt, not including interest. The face value of a note, mortgage, etc.
Principal Payment - Total of principal paid per month on your mortgage.
Property Tax Rate - The rate at which your property will be taxed per year. Example: 1% for a $100,000 home equals $100 per year in property taxes.
Public Record Data - When included as part of the credit report, this information is limited to tax liens, lawsuits and judgments that relate to the consumer's debt obligations.
Purchase Price - The amount, before taxes, fees and closing costs that you pay for an item like a home or auto.