Loans
This term refers to the interest calculated only on the principal amount of the loan, excluding any accumulated interest.
What is simple interest?
Under the CARD Act, individuals under this age must have a cosigner or provide proof of independent income to open a credit card account.
What is 21 years?
This "C" measures the trustworthiness and reliability of a borrower based on their character, often assessed through references and reputation.
What is character?
This term refers to the maximum amount of credit a financial institution extends to a client. It is prominently featured on credit reports.
What is a credit limit?
This number, which typically ranges from 300 to 850, is a summary of your creditworthiness and is a key part of your credit report.
What is a credit score?
This type of loan allows borrowers to borrow up to a predetermined credit limit and withdraw funds as needed.
What is revolving credit?
This legislation, enacted in 2009, aimed to protect consumers from unfair credit card practices and require clearer disclosure of credit card terms.
What is the Credit Card Accountability Responsibility and Disclosure (CARD) Act?
This "C" refers to assets you possess that could be used to repay your debts if income should fail, such as real estate or investments.
What is collateral?
This describes the failure to make a minimum payment on a debt by the due date, which is often reported on your credit report.
What is a late payment?
These entities collect and compile your credit history, including debts and payment history, into a credit report.
What are the credit bureaus?
This term refers to the interest rate charged on a loan that remains constant throughout the entire term.
What is fixed interest?
This law requires credit card issuers to provide consumers with at least 21 days to pay their credit card bills before charging interest.
What is the Truth in Lending Act?
This "C" refers to the amount of money a borrower or business owes compared to how much they earn, assessing the ease of managing new debt.
What is capital?
This numerical factor, representing the total credit you're using divided by your total credit limits, should ideally be kept low.
What is credit utilization?
This term describes the record of when you apply for credit, which can impact your score if there are too many in a short time.
What is a hard inquiry?
This term describes a type of loan where you give a postdated check.
What is a payday loan?
This federal law allows you one free credit report from each of the three major credit bureaus every year.
What is the Fair Credit Reporting Act (FCRA)?
Representing your ability to repay loans, this "C" considers your income, employment history, and financial assets.
What is capacity?
This term describes a loan backed by collateral, often resulting in lower interest rates due to reduced risk for the lender.
What is a secured loan?
Name given to the part of your credit report that lists personal information such as your name, address, and Social Security number.
What is identifying information?
This term describes the gradual reduction of the loan principal through regular payments over time.
What is loan amortization?
This U.S. federal law limits a cardholder's liability for unauthorized credit card charges to this amount, provided the cardholder reports the fraud in a timely manner.
What is $50?
This "C" refers to the terms of the loan itself and broader economic factors, such as interest rates and the general economic climate, which can influence a lender's decision to extend credit.
What is conditions?
It's the number of years most negative information must remain on your credit report, although the time varies by state and type of debt.
What is seven years?
If you find inaccurate information on your credit report, you can file this to have the credit bureau investigate and potentially remove the error.
What is a dispute?