Credit
What is Credit?
Receive cash,goods, or services now and paying for them in the future.
Applying for a loan The Three C’s of Credit
Character • Capacity • Capital
What does FICO stand for?
Fair Isaac Corporation
what is the truth and lending act?
when the bank must report information in the same way and must be upfront about the changes and combine them into one figure
If you lose a credit card and somebody else uses it, you are liable for no more than:
$50
What are the two more unknown C’s of credit
Collateral • Credit History
What is FICO?
A website that helps determine how well someone's credit is doing.
What is fair credit reporting act
organizations must identify the credit bureau that supplied the information used to make their decision.
If you do not pay for an item purchased on credit, the creditor can
Reclaim your item
Revolving credit
Given a maximum credit limit and each month you pay back what you spent.
What FICO score ranges as a poor credit score
619 and lower
what year did the Equal opportunity act put in place?
1974
What is Interest?
An added charge when borrowing money
What is a subprime Loan
Offered to individuals who do not qualify for prime rate loans.
When was FICO created?
1956
what is fair collection billing act?
a procedure for the quick correction of mistakes that appear on consumer credit account
FICO helps determine if you are creditworthy?
20 % Max
What are Unsecure & Secure Loans
Unsecured: Credit Cards; Secure: loans that have collateral, like a car or a house.
Why is FICO important?
FICO helps determine if you are creditworthy.
what is fair debt collection practices act?
prevents abuse by professional debt collectors, and applies to anyone employed to collect debts owed to others.