Vocab 1
the financial ability to repay a loan with present income
what is capacity?
the act of treating people differently based on prejudice rather than individual merit
what is discrimination?
Equifax, Experian, and TransUnion are all examples of
what are nationwide credit bureaus?
what must you do if you believe your credit statement contains an error?
what is mailing a letter to the creditor giving a complete explanation of why you believe there is an error?
pay a monthly fee to the credit bureau for access to this information
what is a subscriber?
a request by a business with a "permissible purpose" to check your credit
what is credit inquiry?
name one way to get started with credit
what is open a savings account, open a checking account, open a store credit account, get a small loan, or apply for a credit card
public assistance is also known as
what is welfare?
a consumer request that requires the credit bureaus to deny all access to a consumer's credit information or files
what is credit freeze?
an itemized bill showing charges, credits, and payments posted to your account during the billing period
what is a billing statement?
what does the fair debt collection practices act prohibit?
what are the use of threats, obscenities, or false and misleading statements?
how many days are you required to mail your statement before the payment is due?
what is 21 days?
a responsible attitude toward honoring obligations, often judged on evidence in the person's credit history
what is character?
a person or company hired by a creditor to collect the overdue balance on an account
what is a debt collector?
what do credit ratings affect?
what are loan terms?
how many major credit bureaus are there?
what is 3?
potential creditors grant credit to you, they must determine whether you are a good risk
what is creditworthy?
the credit bureau assigns points based on factors such as amount of current debt, number of late payments, number and factors such as amount of current debt, number of late payments, number of types of open accounts, amount of income, and so on
what is point system?
name the 5 c's of credit.
what is character, capacity, capital, conditions, and collateral?
how is an excellent credit rating different from a fair credit rating, and why is having an excellent credit rating so important?
answers vary, see Mrs. Bullard.