Damages: Compensation for loss or injury caused by another. Damages may be recovered by any person who has suffered loss, detriment, or injury through an unlawful act, omission, or negligent act of another.

Data Furnisher(CRA): Any company that provides credit information to credit reporting agencies.

Date of Purchase: (Also known as the Date of Transaction) The day that a purchase is made on a credit card account. Some accounts will figure interest to be charged to the credit card holder as to the date of purchase.

Date of Posting: On a credit account, the date that the transaction slip is listed to the account by the credit card company. This can take several days at times. Some credit card companies charge on the date of posting. This method would be the least expensive.

Dealer Charges: With regard to vehicle purchases, these are fees and charges for extras added to the vehicle by the dealer. Some examples might be rust proofing, a stereo system, or perhaps an extended warranty.

Debit Card: Also called a check card Another fun plastic card that performs like a credit card, but in this case, the funds are removed from the owner’s bank account that the card is issued from. These cards require a PIN (personal identification number) that the owner of the card has. Do NOT ever give your PIN to anyone you don’t want accessing this account. When asked whether the transaction is debit or credit, I recommend you choose credit. For more information see the Credit Fitness® Guide to credit improvement.

Debt: A sum of money owed from one person or institution to another person or institution.

Debtor: The person or entity that borrows money. The term debtor may be used interchangeably with the term borrower.

Debt Collector: A company or person who collects past due or charged off loans or debts.

Debt Ratings: Quality ratings assigned to mortgage-backed securities by private rating agencies evaluating the ability of a debt issue to support interest and principal payments in a variety of economic environments. The stronger the capacity to make payments in severe economic circumstances, the higher the rating will be. The rating categories for investments grade bonds and securities are: Triple-A, Double-A, Single-A, and Triple-B.

Debt Service: The periodic payment of principal and interest earned on mortgage loans.

Debt Servicer: A company who collects payments on loans. This is usually everyday collection of payments and not those payments that are past due.

Debt to Income Ratio: In home loan terms, this is the percentage of the gross income of the borrower that makes up the complete house payment plus any long term debt payments.

Deed: A written document signed, delivered, and usually recorded, which conveys title to property from one owner to another. (See conveyance.)

Deed in Lieu: A deed given by a mortgagor to a mortgagee to satisfy a debt and avoid foreclosure.

Deed of Trust: A type of security instrument in which the borrower conveys a trust to hold property to a third party (trustee) as security for the lender, with the condition that the trustee shall reconvey the title upon the payment of the debt, and, conversely, will sell the land and pay the debt in the event of a default by the borrower. Also called a Mortgage in everyday usage.

Deed Restriction: Limitations placed on a deed restricting the use of the property.

Default: A breach or non-performance of the terms of a note or the covenants of a mortgage. A failure to meet a payment or fulfill a credit obligation.

Defendant: The party to a lawsuit or civil proceeding that did not initiate the legal action; the party against whom the action is being taken.

Deferred Interest: See negative amortization.

Deferred Payments: Payments that begin at a future date.

Deficiency Judgment: A court order to pay the balance owed on a loan if the proceeds from the sale of the loan collateral.

Delinquency: A late payment on an account. This is the most common negative item on credit reports. Delinquencies are deadly to credit scores!

Delinquency Ratio: Ratio of number of past due loans to total number of loans serviced.

Demand Letter or Statement: Also called a Beneficiary Statement this is a term used for the statement issued by a lender who holds a home loan that is scheduled to be paid off. The demand letter includes the principal balance due on the loan plus the accrued interest on the loan to a specific date.

Deposit: In real estate: The deposit of money delivered by a buyer to a seller to assure that the buyer’s contract obligations will be fulfilled. In everyday life: To add income to a checking, savings, money market or other investment account.

Depreciation: Loss of value due to all causes, but usually considered to include physical deterioration, functional obsolescence, and economic obsolescence.

Direct Deposit: With direct deposit, your paycheck or benefit check is electronically transferred and directly deposited into your bank account. The amount of money is available immediately.

Direct Sales Comparison Approach: Process of estimating a property’s value through examination and comparison of actual sales of comparable properties.

Disclosure: Information relevant to specific transactions that is required by law.

Discount: In loan originations, a discount refers to an amount withheld from loan proceeds by a lender. In secondary market sales, a discount is the amount by which the sale price of a note is less than its face value. In both instances, the purpose of a discount is to adjust the yield upward, either in lieu of interest or in addition to interest. The rate or amount of discount depends on money marker conditions, the credit of the borrower, and the rate or terms of the note.

Discount Point: Amount payable to the lending institution by the borrower or seller to increase the lender’s effective yield. One point is equal to one percent of the loan.

Discretionary Expenses: Non-essential expenses. An example is money for vacations, jewelry or payments on a 2 nd home.

Discretionary Income: That money that is left over after all essential expenses are paid.

Disposition Fee: A fee charged by the car dealer for the borrower/leasee to give back the car at the end of the lease.

Distress Delinquents: Borrowers who are, or could become, seriously delinquent because of circumstances beyond their control.

Down Payment: Theinitial investment into a real estate purchase not including closing costs.A down payment is a percentage of the value of the property and is determined by the type of mortgage you choose. Down payments typically range from 0 to 20 percent of the property value. The part of the purchase price which the buyer pays in cash and does not finance with a mortgage.

Due-on-Sale: A clause in a mortgage stating that if the mortgagor sells, transfers, or in anyway encumbers the property, then the mortgagee has the right to implement an acceleration clause making the balance of the obligation due.

Dumpster Divers: Years ago it meant people going through trash bins looking for bottles, cans, or thrown away goodies. Now it refers to those with criminal intent to steal a person’s identity for the purpose of applying for credit or loans in that person’s name. Get a paper shredder right away and do NOT throw away anything with your name, address, bank account numbers, Social Security number, and account numbers on it without first shredding those documents!