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Houston Mortgage > Glossary >
Debt Management > C 11-20
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Charge card
A card that requires a full payment of the charge by the due date. Unlike credit cards, which give borrowers a revolving line of credit and lets them borrow against it, carrying a balance with an agreed-to interest rate, charge cards do not allow carrying a balance and no interest is charged. American Express and Diner''s Club are examples of charge cards.
Closed-account fee
A fee charged for shutting down an account. Sometimes charged if the account is closed before a certain time period has passed.
Co-branded cards
This term has two uses in the credit card industry. 1) A type of affinity card issued through a partnership between a bank and another retail company. For instance, a large department store may co-brand a card with a bank. The card would have two brand names on it -- the bank's name and the store's name. Usually, the attraction of the card is rewards from the retail partner, such as airlines. 2) A credit or debit card that carries the logo of one of the major credit card issuers -- American Express, Discover, MasterCard or Visa.
Co-maker
Any party that co-signs a promissory note. All co-makers assume responsibility for the loan if any of the other co-signers renege.
Co-signer
A person who signs a promissory note that is also signed by one or more other parties. All parties take responsibility for the debt if any of the others renege.
Collateral
Property pledged as security to a debt. If the borrower fails to repay the loan, the lender may gain ownership of the collateral and sell it to recover the money.
Confirmation
Approval by the bankruptcy court of a plan of reorganization that has met the many requirements of code section 1129, Once approval is given, all of a debtor's pre-petition debts are discharged (eliminated) as provided by the plan.
Consumer bankruptcy
A bankruptcy case filed to reduce or eliminate debts that are primarily consumer debts.
Consumer credit
Loans for personal or household use as opposed to business or commercial lending. Loans are generally unsecured, not backed by collateral.
Consumer Credit Counseling Service
A service that offers counseling about how to work out a realistic budget and debt repayment plan and work with creditors. The goal is to ensure that debts are paid back over time.
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Houston Home Mortgage