vocab 1
A yearly charge for the privilege of carrying and using a particular credit card, or other service.
Annual Fee
Current amount owed on a debt.
Balance
Money borrowed on a credit card account, usually associated with higher interest rates.
Cash Advance
When businesses contact the credit bureaus to get a person's credit report, usually when someone applies for new credit
Inquiry
Accounts that allow the borrower to charge up to the limit, pay some, and continue to charge without a set ending time period.
Revolving Credit Accounts
States that total borrowing should not be more than 20% of one's yearly take-home pay and monthly payments should not be more than 10% of one's monthly take-home pay.
20/10 Rule
the legal act of asking a federal court to declare on unable to pay debts owed to creditors.
Bankruptcy
An agency that has counselors to help with budgeting, negotiating with creditors to develop a repayment schedule.
Credit Counseling Service
Occurs when a creditor can take one or more of your personal possessions as security or in payment of a debt.
Lien
Loans made without the borrower offering any specific assets as security for the loan with lending based solely on the borrower's credit rating.
Unsecured Loans
Account where the borrower has to pay back the full amount borrowed each month.
30-Day Account
Refers to a borrower's ability to repay debt, usually measured by current income and level of outstanding debt.
Capital
An amount owed to a lender
Debts
A plan where a specified beneficiary receives money upon the death of the insured.
Life Insurance Policy
How many regional federal reserve banks are there
12
This explains and details all of the fees and how interest is calculated on a credit account.
Account Disclosure Statement
Refers to a borrower's history of paying obligations.
Character
A small loan company that specializes in lending to people who have no credit or bad credit.
Finance Company
A high interest loan where money is borrowed against a future paycheck.
Payday Loan
Who insurances credit unions
NCUA
Money paid by one former spouse to the other to help support him or her after a divorce.
Alimony
An item of value pledged as a guarantee for payment of a loan which can be repossessed by the lender if the loan is not paid back.
Collateral
A court ruling that requires that money be deducted from a person's paycheck involuntarily in order to pay a debt
Garnishment
This interest rate is usually 3% points higher than the federal funds rate which is set by the U.S. Federal Reserve Bank.
Prime Rate
Who insurances banks
FDIC