TYPES OF CREDIT
A payment card issued to users that allows them to pay for goods and services based on their promise to pay
What is a credit card?
A short-term loan that provides immediate cash by securing a borrower's check or authorization for automatic withdrawal
What is a payday loan?
Any fee representing the cost of credit or the cost of borrowing
What is a finance charge?
Details a person's financial history specifically related to their ability to repay borrowed money
What is a credit report?
An entity such as a financial institution, merchant, or individual that lends money
What is a creditor?
Credit available up to a limit that automatically renews as debts are paid off
What is revolving credit?
A personal loan taken out to help pay for university, tuition, and books, often with very low interest rates
What is a student loan?
An annual (yearly) fee associated with having a credit card, typically $20-$50
What is an annual fee?
A numerical expression based on analysis of a person's credit files to represent their creditworthiness
What is a credit score?
Someone who receives something with a promise to return it or its equivalent
What is a borrower?
A one-time loan paid back over a specified period in equal payments
What is closed-end credit?
A loan made to consolidate several debts into one, usually to reduce monthly payments
What is a consolidation loan?
Interest for new cardholders that is usually lower than traditional interest rates
What is an introductory rate?
A measure of a person's ability and willingness to make credit payments on time
What is a credit rating?
A person or organization who makes funds available for others to borrow
What is a lender?
A loan with a certain limit on the amount of money you can borrow for a variety of goods and services
What is open-end credit?
The borrower gives the lender their automobile title in exchange for a set amount of cash
What is a title loan?
A charge against a client for not paying a bill or returning a rented or borrowed item by its due date
What is a late fee?
When a borrower has passed the initial credit check
What is pre-approved?
To agree to be responsible for another person's loan payments if that person fails to make them
What is cosigning?
A type of credit extended by a bank to a government, business, or individual
What is a line of credit?
A loan repaid in periodic payments
What is an installment loan?
A legal process where a person’s assets are used to repay creditors when they can’t pay their debts.
What is bankruptcy?
An easy-to-read table that discloses rates, fees, terms, and conditions of a credit card agreement as required by federal law
What is a Schumer Box?
A nonprofit agency with offices in a number of states that provides credit counseling services
What is Consumer Credit Counseling Services (CCCS)?