A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Late PaymentA payment made after its due date, which can trigger fees, higher rates, and damage to your credit history.
- DefaultThe failure to repay a debt as agreed after an extended period, which can lead to collections, legal action, or repossession.
- Charge-OffWhen a lender writes off a debt as unlikely to be repaid, usually after months of missed payments, while you still owe it.
- CollectionsThe process of a creditor or a hired agency pursuing an unpaid debt, which appears as a negative mark on your credit report.
- Payment HistoryThe record of whether you paid your bills on time, which is the single biggest factor in most credit score calculations.
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