Chapter 10 - Credit Protection

Auto Insurance Score

Using data from the TransUnion credit report, it helps auto insurance companies to assess the risk of insuring a consumer by measuring the probability that an auto insurance claim might be filed.

Consumer Lending

Credit cards, home equity loans, home equity lines of credit, auto loans, other recreational vehicle loans, and appliance loans.

Credit Agencies

Companies that compile and maintain credit information from credit card companies, banks, mortgage companies, and other creditors for the purpose of creating personal in-depth credit reports on individuals.

Credit Score

A number that summarizes a person's credit risk based on an evaluation of his or her credit report at a particular point in time.

Dumpster Diving

A means of identity theft, that involves going through someone's trash...

Hard Inquiries

Inquiries made by creditors or potential creditors.

Home Insurance Score

Ranges from 150 to 850 and is once again calculated using the TransUnion credit report. It is primarily used to assess the probability that a homeowner will file a homeowner's claim.

SCAM

An acronym from the Justice Department to help avoid identity theft.

Secured Loans

Loans backed by collateral that the bank can claim if the borrowers do not repay the loan as agreed.

Shoulder Surfing

A means of identity theft by eavesdropping on those who punch in numbers or verbally give numbers over the phone.

Soft Inquiries

Inquiries made by the consumer or by a prospective or current employer.

The Fair Credit Reporting Act of 1971

Provides that U.S. citizens have free access to their credit reports and credit scores from each of the three national credit reporting agencies.

Unsecured Loans

Loans with no collateral and only backed by the borrower's promise to pay.