Credit Card Glossary: Terms and Definitions
Confused by credit card terms? CreditCards.com's glossary of credit card definitions will help. From account holder to Regulation Z, we have defined the most-common and most-confusing credit card terms.
- Reaffirmation is a procedure by which someone in bankruptcy or default agrees to continue to pay off a loan. Credit experts advise consumers to be very cautious in their communications with debt collectors on old debt. If a consumer agrees that they owe the debt, or pay off a small portion of it, the debt has been reaffirmed. The consequence of reaffirming a debt is the statute of limitations is reset to zero, lengthening the time that a creditor can successfully sue to get a judgment forcing payment.