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Credit History
The record of how you've borrowed and repaid debts.

Credit Limit
The maximum amount that you can borrow. Your credit limit is calculated based on a lot of factors such as your personal profile, credit history, net income, etc. More commonly it is a multiple of your net income.

Credit Report
Credit report is a documentation of the credit history containing information about your credit experiences, such as your bill-paying history, the number and type of accounts you have, late payments, collection actions, outstanding debt, and the age of your accounts, is collected from your credit application and your credit report.

Credit Scoring System
A Statistical system used by creditors to compare your credit history with the credit performance of other consumers with similar profiles. A credit scoring system awards points for each factor that helps predict who is most likely to repay a debt. A total number of points- a credit score-helps predict your creditworthiness.

Debt
An amount of money owed by one person, company, organization or other entity to another.

Default
Failure to meet legal obligations in a contract; specifically, failure to make the monthly payments on a mortgage. IF this happens, you can end up losing the house.

Delinquency
Failure to make payments on time. This can lead to foreclosure.

Depreciation
A Decline in the value of property or asset over time.

EMI
Equated Monthly Installments (EMI) are installments towards repayment of a loan, lease or hire purchase agreement. As banks and finance companies conduct very high volumes of retail business it becomes easier for them to monitor and manage installments that are constant in amount.

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