Credit
Agreement to receive stuff NOW…but pay for them in the future (plus interest) is called
Credit
A loan used to pay for a home or real estate
Mortgage
Shared protection against risk is called
Insurance
Company that do NOT sell stocks to the public
Private company
interest charged based on balance of what you owe
APR: annual percentage rate
Detailed breakdown of your credit history
Student loan where the government pays interest (i.e. no interest collects) while in school
Subsidized loan
Amount you pay to have insurance - based on how risky you are
Premium
A collection of investments
Investment portfolio
the 3 main credit reporting companies
Equifax, TransUnion, Experian
Loan against available credit on account
Cash Advance
Lending practice that imposes unfair or abusive loan terms on a borrower
Predatory lending
Provides free/low-cost health coverage to low-income families and individuals
Medicaid
Traditional "stock market" where investors buy and sell among themselves
Secondary market
The 5 C's of credit
Capacity, Character, Capital, Collateral, Conditions
Creditors must tell consumers what credit will cost them before they use it
Truth and Lending Act
Form of discrimination where lenders/insurers draw “a red line” around “troubled” area
Redlining
Car insurance that covers another person's damage (but not yours) and is required in most states
Liability insurance
Fund that pools money of many individuals and invests it in a variety of stocks
Mutual fund
encourages homeownership while protecting lenders
FHA: Federal Housing Administration
Credit card interest calculated on opening balance - payments made during month (best for us)
Adjusted balance
A consequence of not paying: court takes/sells debtor’s property
Chapter 7
Cap (most) on how much you’ll have to pay out of pocket in one year
out-of-pocket maximum
a period of sustained growth and optimism in financial markets, most commonly associated with the stock market
Bull Market
initial sale of stock to public by investment bankers
I.P.O. : Initial Public Offering