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Houston Mortgage > Glossary >
Credit reports and Credit scores > D 1-10
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Debt-to-available-credit ratio
The amount of money a person has in outstanding debt, compared to the amount of credit available on all of the individual''s credit cards and credit lines. The higher a person''s debt to available credit, the more risky the individual appears to potential lenders.
Default
1. The condition that occurs when a consumer fails to fulfill the obligations set out in a loan or lease. 2. A designation on a credit report that indicates a person has not paid a debt that was owed. Accounts usually are listed as being in default after several reports of delinquency. Defaults are a serious negative item on a credit report.
Delinquent
A designation on a credit report that a person hasn''t made the minimum payment on a loan or a credit card on time. On credit reports, delinquencies are usually shown as being 30, 60, 90 or 120 days delinquent. Delinquencies are a serious negative item on a credit report.
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