Identity Theft: Stolen personal information used to obtain credit illegally. That credit is used to make illegal purchases in the victim’s name. This is the fastest growing crime in the USA. Currently the victim is not responsible for much as far as a financial loss, but the mess that is made from this crime is the victim’s responsibility to clean up. See my book for extensive information on preventing this crime and cleaning up after the fact.

Index: A part of an Adjustable Rate Mortgage. This is the published, easily found cost of money that is used to determine the new interest rate that will be charged on the ARM loan. SEE Adjustable Rate Mortgage for a full explanation.

Indexed Rate: More completely called the Fully Indexed Rate; this is the ARM’s margin plus the value of the Index used in the loan. The sum of those 2 numbers is the indexed rate. SEE Adjustable Rate Mortgage for a full explanation.

Inflation: The devaluation of currency due to an excess of that currency in the market. In layman’s terms, it is the occurrence of prices rising due to an overall increase of cost for basic needs. I.E. The high cost of gasoline affects the profitability of businesses as the cost to ship inventory increases. That cost is usually passed along to consumers in the form of price increases. It takes more money to buy an item or service. That price increase then causes others to raise their prices and there is a snowball effect.

In-file credit report: A no frills, right out of the computer credit report. A Residential Mortgage Credit Report is one that is reviewed by the person pulling the report and the information is summarized. Duplicate entries are deleted. Public information might be further verified. In the past 5 years these reports are not routinely used as they once were due to consumers and professionals manicuring of the credit file and the lender or creditor’s wishing to have the “unvarnished truth” as to the state of the borrower’s credit.

Inquiry: A request for information in a consumer’s credit report. An inquiry occurs every time a credit application is completed, when more credit is applied for, and as a regular part of business from some creditors. Due to changes in the law, consumers can now access their own credit reports and are entitled to a free credit report each year from the three main credit repositories.

Installment account/loan/credit: A type of credit where a consumer signs a contract to repay a fixed amount in equal payments over a specific period of time. A car or boat loan is an excellent example of an installment loan.

Insurance: A purchased policy for protection of an asset such as a house, car, boat, a person’s life, or a liability policy. In the event of a loss, this policy of protection brings pays out money to correct or repair the loss to the full extent of the coverage. Obviously life insurance will not bring a person back, but the intent of life insurance is to protect the loved ones of the insured against loss of the insured’s income, the family assets, and to provide for his/her heirs.

Interest: With regard to bank accounts and investments, it is the money earned for keeping the funds in the named account. With regard to interest PAID it is the sum paid for the use of a creditor’s funds.

Issuing Financial Institution: An entity or company that issues credit cards to consumers.