General Credit
The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.
What is Credit
Refers to your integrity/trustworthiness
What is Character
A company that loans money to people who often cannot get loans from banks
What is a Consumer Finance Company
An interest rate that stays the same
What is Fixed Interest Rate
The best site to get your free credit report score because it is federally supported
What is Annualcreditreport.com
Based on your past payment history, reliability, the other 5 Cs of credit, etc. Reflects the past 7 years
What is Credit Score
If you have the money to pay off loan you want, the size of your bank account
What is Capacity
This place will give you a loan for your home
What is Mortgage Lenders
An interest rate than can change
What is Variable Interest Rate
Past credit history remains on your credit report for this many years
What is seven years
When you pay larger payments than required (Can reduce the length and cost of the loan)
What is Prepayment
What the bank can take if you don't pay your debt
What is Collateral
They will give you a loan for your car
What is an Auto-Finance Company
Two people sign a loan. The second promises to pay if the first signer of the loan does not pay
What is a Cosigned Loan
This is the most common type of bankruptcy that affectsyour credit report; known as "Straight Bankruptcy"; Courts divide up debtor's assets among creditors
What is Chapter 7 Bankruptcy
When you do not pay back your loan
What is Default
Your well-being and the well-being of the overall economy
What is Condition
You use your next paycheck as collateral for the loan from here; Often results in cycle of borrowing and massive debt
What is Payday Lenders
No collateral attached to this loan; riskier for creditors, so they charge higher interest rate
What is Unsecured Loan
This type of bankruptcy is known as "Reorganization of Individual"; Debt Consolidation/Financial Rehabilitation; Supervised by courts
What is Chapter 13 Bankruptcy
This law placed restrictions on Credit Card Companies
What is the CARD Act of 2009
Your net worth (includes money and assets)
What is Capital
This business will allow you to borrow money against the value of your policy
What is an insurance company
You promise that if you don't pay the loan, the bank can take the collateral, may have a lower interest rate
What is Secured Loan
These are the three companies that keep track of credit reports
What is the Equifax, Experian, Transunion