Vocab
What is the amount of money originally borrowed?
Principal
What is a bank card that automatically deducts the amount of a purchase from the checking account of the cardholder?
Debit Card
What is Cadence Bank an example of?
A commercial Bank
What is something of value that a borrower lets the lender claim if a loan is not repaid?
Collateral
What is the act which requires lenders to inform borrowers of all direct, indirect and true costs of credit?
The Truth in Lending Act
What is the money owed by the borrower?
Debt
What is the type of card issued by a bank that allows users to finance a purchase?
Credit Card
What is Golden Triangle Federal... an example of?
A credit Union
What is a loan that is backed up by collateral?
A secured loan
What is the law that states that a consumer's credit application can only be judged on the basis on financial responsibility not the applicant's gender, race, marital status, age, national origin, or receipt of public assistance?
The Equal Credit Opportunity Act
What is the amount a borrower must pay for the use of someone else's funds?
Interest
What is a form of credit that stores grant to customers to buy goods now and pay for them later?
Charge Account
What is a for-profit institution that offers a full range of financial services, including checking, savings, and lending?
Commercial Bank
What is a loan guaranteed only by a promise to repay it?
An unsecured loan
What is the law restricting the amount of interest that can be charged for credit usually determined by states?
State Usury Laws
What is one of the most common types of debt? It is usually paid back in with equal payments, or installments over a period of time.
Installment debt
What is the rating of the risk involved in lending money to a specific person or business?
Credit Rating/Score
What is a nonprofit financial institution that is owned by its members and organized for their benefit?
Credit union
What do you have to pay when you borrow funds?
Principal and Interest
What is known as the state of legally having been declared unable to pay off debts owed with available income?
Bankruptcy
What are manufactured items that have a life span longer than 3 years?
Durable Goods
What is the investigation of a person's income, current debts, personal life, and past history of borrowing and repaying debts?
A Credit Check
What are businesses that take over contracts for installment debts from stores and adds a fee for collecting the debt?
Finance Companies
What is the amount of time you have to pay off a loan?
Installment Period
What happens after individuals declare personal bankruptcy?
The proceedings of the bankruptcy stay on their credit history for 10 years.