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Houston Mortgage > Glossary >
Credit Card > U 1-10
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Universal default
Universal default is a policy of some lenders that allows them to punish borrowers who pay any creditor late. It is most commonly used by credit card companies and revealed in the fine print of their contracts with consumers.
Unsecured claim
A claim or debt for which a creditor holds no special assurance of payment, unlike a mortgage or lien; a debt for which credit was extended based solely upon the creditor''s assessment of the debtor''s future ability to pay.
Unsecured debt
Debt that is not guaranteed by the pledge of any collateral. Most credit cards are unsecured debt, which is a main reason why their interest rate is higher than other forms of lending, such as mortgages, which employ property as collateral.
Unsecured loan
An advance of money that is not secured by collateral.
Usurious rate
A rate based on unnecessarily or unlawfully high interest; act or practice of lending money at high interest; sometimes intangible property taxes are applied to income from usurious rates.
Usury
Illegal, excessive interest.
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