Credit and Debt
Credit and Debt
Credit and Debt
Credit and Debt
Credit and Debt
100
The Four Cs of Credit
What is Collateral refers to something of value that a debtor is willing to forfeit if he or she is unable to repay the loan. Capital is the amount of valuable items a credit user has and is willing to let lenders sell should the debtor not pay his or her charges. Capacity is the amount of payments a debtor can afford and the debtor's ability to repay a loan. To determine a debtor's capacity, lenders look at his or her income and employment patterns. Character refers to how trustworthy a debtor is. Lenders will look at a person's credit record to see if the person usually pays his or her bills on schedule.
100
Collateral
What is a security pledged for the repayment of a loan i.e. property or assets
100
Credit Cards
What is a card that allows a person to charge at the moment and pay later
100

Credit Score

What is A rating used by credit reporting companies to help lenders decide whether and/or how much credit can be extended to a borrower.

100
Garnishment
What is court-ordered procedure by which a portion of a delinquent debtor's wages are paid to satisfy the debt
200
APR (Annual Percentage Rate)
What is the interest rate paid per year on borrowed money.
200
Consumer Credit Counseling Services (CCCS)
What is non-profit organization that provides free or low cost counseling and guidance to people experiencing financial difficulty
200

Credit History

What is A record of your borrowing and paying habits. Credit reporting companies track your history and supply this information to credit card companies, credit unions, and other lenders.

200
Default
What is loss resulting from failure of a debt to be paid
200
Identity Theft
What is the co-option of another person's personal information (e.g., name, social security number, credit card number, passport) without that person's knowledge and the fraudulent use of such knowledge
300

Balance Owed

What is amount owed on a loan (also called principal balance)

300

Consumer Debt

What is Money people owe to banks or stores for goods they have purchased

300

Credit Rating

What is An estimate of the ability to fulfill financial commitments, based on previous dealings.

300
Due Date
What is the date on which a financial obligation must be repaid
300
Late Fee
What is a penalty for making a payment after the due date
400
Bank
What is a financial institution that accepts deposits and channels the money into lending activities
400
Co-signed Loans
What is when someone with strong established credit signs a contract along with the borrower, agreeing to full responsibility of the repayment of the loan
400
Credit Report
What is a negative record of an individual's or company's past borrowing and repaying, including information about late payments and bankruptcy.
400
Finance Charge
What is any fee representing the cost of credit, or the cost of borrowing. It is interest accrued on, and fees charged for, some forms of credit
400

Credit Limit

What is the highest amount you may charge on a credit card. Your limit is set by your card company's opinion of your ability to handle debt.

500
Bankruptcy
What is legal inability to pay off debts/ legal proceeding that helps people whom cannot pay their bills get a fresh financial start by temporarily, or permanently, preventing creditors from collecting debts from them
500
Credit Card Companies
What is bank or business that allows somebody to purchase goods and services and pay for them later, often with interest
500
Credit Reporting Agency
What is An organization that keeps a running record of the financial and credit transactions of credit users and the credit worthiness of consumers. They sell information to creditors, landlords, insurers, employers, and other businesses.
500
Fixed Interest Rate
What is an interest rate that does not change from month to month
500
Line of Credit
What is a given amount of unsecured short-term funds a bank will lend to a business, provided the funds are readily available
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