Credit Card Glossary

Letter U


A term used to classify individuals who do not have bank accounts and are forced to either lead a cash and carry lifestyle or rely on prepaid debit cards to make purchases.

Universal Default

The practice which allows credit card companies the ability to adjust interest rates and terms to one of their customers if their risk assessment has been changed due to their relationships with other lenders -- failure to make timely payments, delinquencies, etc.

Unsecured Credit Cards

The most common type of credit issued largely to people with good or excellent credit. These types of credit card offers have set credit lines that do not require any form of collateral. The opposite of an unsecured credit card is a secured credit card which does require collateral and are typically issued strictly to those with bad credit.

User Authentication

Confirming a credit card user's identity to make sure that they are an authorized user on a credit card account. This can be done in a variety of ways. The most common for face to face transactions is by checking an individual's driver's license or matching their signature on a receipt to that on the signature strip.


The practice of lending money at extortionist or to put it kindly, extremely high rates. This is a heated topic in consumer advocacy circles as usory lending is deemed to be predatory and takes advantage of people in desperate situations who need to obtain short term loans. Severla states have usory laws, however some do not and banks such as First Premier, the largest offender of taking advantage of people in our opinion conduct their business.

Utilization Ratio

A computation method used to calculate credit scores that compares available credit to that being used. It is the same thing, and is commonly referred to the balance to limit ratio.