Credit Basics
Credit increases this for consumers, which allows them to spend more money than they actually have
What is purchasing power
This is a credit account that allows you to charge items or services only at that store or with that merchant
What is a store account
This is the name for a loan that is used to purchase real estate (like a house)
What is a mortgage
This is a number that represents your ability to repay loans and make payments on time
What is a credit score
When there is an error on your account, you must file one of these with your credit company
What is a dispute
This type of interest rate (also known as variable) can lead to paying significantly more over the life of a loan
What is an adjustable rate
This is a form of credit card for which the cardholder must pay the balance in full by the due date
What is a charge card
What is a down payment
This is a summary of your credit history, including your financial information and how you've managed your debt
What is a credit report
When you have issues with a credit company you can contact one of these, like the Better Business Bureau, for assistance in rectifying the situation
What is a consumer advocacy group
This is the amount of money required to avoid late fees and penalties
What is the minimum payment
This is an account on which the account holder can charge repeatedly up to a maximum limit
What is revolving credit
This is something of value applied toward the down payment of a new purchase
What is a trade-in
How frequently may people request a free credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion)?
This is the forfeiture of an individual's assets in exchange for a discharge of debts
What is chapter 7 bankruptcy
When you get your credit card bill, this is the amount of time (usually 10 - 20 days) before you have to make a payment or start earning interest
What is the grace period
This is a preapproved loan amount that a debtor can borrow as needed with no collateral
What is a line of credit
This is a loan for which the maximum amount is established and approved in advance
What is a preapproved loan
Credit scores have a range of ______ to ______
What is 300 - 850
This is the process of getting one loan with a single monthly payment to pay off ALL of your debts
What is debt consolidation
These three components make up the total cost of a loan
These are direct loans of cash made to a consumer at a fixed interest rate for a set period of time
What are consumer loans (will accept installment loans)
This is the act of paying off an existing loan with a new loan that usually has better terms
What is refinancing
Which one of the following entities cannot pull your credit report - employer, potential creditors, family members, landlords
What is family members
This legal maneuver requires the person to follow a repayment plan for some of an individual's debt