Credit 1
Agreeing to be responsible for another person loan payments if that person fails to make them?
Cosigner
a __________ details a person's financial history specifically related to their ability to repay borrowed money.
Credit Report
Interest - A charge for a loan, usually a percentage of the amount loaned and/or an excess or bonus beyond what is expected or due.True or False
True
An interest rate on a loan or security that fluctuates over time.
Variable interest rate
A type of bankruptcy for people and businesses with limited incomes, which sells off their assets to repay their debts. It is also known as “liquidation bankruptcy”
Chapter 7 Bankruptcy
a measure of a person's ability and willingness to make credit payments on time.
Credit Rating
(in relation to insurance) a set of qualities that are shared by many people in a group, country, etc.
Character
To loan money to consumers in the hope and expectation they will default and the lender will be able to take the collateral.
Predatory lending
when a borrower has passed the initial credit check
Pre-approved
A type of bankruptcy for people who can afford monthly payments, which allows them to keep their assets. It is also known as “reorganization bankruptcy”
Chapter 13 Bankruptcy
Is credit that is available up to a limit and automatically renewed as debts are paid off or paid down. Most credit cards are a form of revolving credit.
Revolving Credit
A provision in most loan and insurance contracts which allows payment to be received for a certain period of time after the actual due date. During this period no late fees will be charged, and the late payment will not result in default or cancellation of the loan. A typical grace period is 15 days.
Grace Period
______ is when a person or organization declares in law unable to pay debt
Bankruptcy
The cost you pay each year to borrow money, including fees, expressed as a percentage
Annual Percentage Rate (APR)
A U.S. government agency that helps protect consumers by regulating financial products and services, like mortgages, credit cards, and student loans
Consumer Financial Protection Bureau (CFPB)
an unlawfully high amount or rate of interest
Usury
a fee charged by a lender on entering into a loan agreement to cover the cost of processing the loan
Origination Fee
True or False Lawn Shops - a store that offers money for an item with the option to redeem the item within a period of time.
False
A credit card service that allows cardholders to withdraw a certain amount of cash, either through an ATM or directly from a bank, typically at a high interest rate or for a fee
Cash Advance
An agreement in which a borrower receives something of value now and agrees to repay the lender in the future, generally with interest
Credit
any fee representing the cost of credit, or the cost of borrowing
Finance Charge
a personal loan to purchase an automobile
Car Loan
True or False- Truth in Lending Act 1968 - this is called the Consumer Credit Protection Act, requiring money lenders to be explicit about the true costs of credit transactions. It also outlaws the use of threatened or actual violence to collect debts and restricts the amount of garnishments. The act also established a National Commission on Consumer Finance
True
A person who has permission to use and/or carry another person's credit card, but isn't legally responsible for paying the bill
Authorized User
Something, typically money, that you owe to a person or a business
Debt