Credit Basics
This arrangement allows a person to buy something now and pay for it later.
What is credit?
This is a fee that some credit card companies charge customers once each year.
What is an annual fee?
This is the money a buyer pays upfront when purchasing an expensive item.
What is a down payment?
This 2009 law protects consumers from unfair credit card fees and certain unfair interest-rate increases.
What is the CARD Act of 2009?
This full-service financial institution may offer checking accounts, savings accounts, loans, and credit cards.
What is a commercial bank?
This is the highest amount of money a person is allowed to owe on a credit account.
What is a credit limit?
This abbreviation represents the yearly interest rate charged on a credit account.
What is APR?
This is something valuable that a borrower promises to the lender to guarantee repayment of a loan.
What is collateral?
This federal law requires creditors to treat applicants fairly and prohibits credit discrimination.
What is the Equal Credit Opportunity Act, or ECOA?
This member-owned financial cooperative provides savings and credit services to its members.
What is a credit union?
This score is based on how a borrower handled previous loans and credit accounts.
What is a credit rating?
Visa and Mastercard are common examples of this type of credit card.
What is a bank credit card?
This type of short-term credit may last 60 or 90 days, with a payment due every 30 days.
What is a budget credit account?
This federal law provides rules for handling customer complaints about credit-card billing errors.
What is the Fair Credit Billing Act, or FCBA?
This type of business collects and maintains credit information about individuals and businesses.
What is a credit agency?
A customer repeatedly shops at the same business because they prefer its products and service.
What is customer loyalty?
One credit card has a 15% APR, while another has a 28% APR. If all other terms are equal, this card will generally cost less when carrying a balance.
What is the card with the 15% APR?
Jordan pays $2,000 at the time he purchases a car and borrows the remaining amount. The $2,000 is called this.
What is a down payment?
A qualified applicant is denied credit only because of her race. This law may have been violated.
What is the Equal Credit Opportunity Act, or ECOA?
Marcus wants to review the information being reported about his borrowing and payment history. He would request a report from this type of business.
What is a credit agency?
Maria’s credit card has a $2,000 balance limit. She already owes $1,600. This means she has this much credit available.
What is $400?
A credit card charges a $75 fee every year, even if the cardholder rarely uses it. This charge is called this.
What is an annual fee?
A borrower uses a vehicle to guarantee a loan. If the loan is not repaid, the lender may take the vehicle because it serves as this.
What is collateral?
Taylor notices a purchase on her credit-card bill that she did not make. This law establishes procedures for disputing the billing error.
What is the Fair Credit Billing Act, or FCBA?
Employees of a local school district join a member-owned institution that offers checking accounts and loans. This institution is most likely this.
What is a credit union?