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What is Credit?
How to Qualify for Credit
Sources of Consumer Credit
Credit Rights & Responsibilities
Maintain a Good Credit Rating
100
the percentage that will tell you how much extra you will pay for your loan or credit card balance over time
What is the interest rate?
100
a way for which a young person can get a loan is to have someone ______ with them.
What is cosign?
100
the maximum amount allowed to charge
What is a credit limit?
100
the total cost a borrower must pay for a loan, including interest and fees
What is the finance charge?
100
the type of credit one should start with when just beginning to build his or her credit score
What is a department store credit card?
200
the maximum percentage of one's take-home pay that should be used towards paying off debts
What is 25%
200
a record of your past borrowing and repayments
What is a credit history?
200
the property pledged to back a loan
What is collateral?
200
the finance charge calculated as a percentage of the amount borrowed
What is APR (annual percentage rate)?
200
someone using someone else's identity to get cash or buy products using credit
What is identity theft?
300
the difference between the amount owed on a home and the home's value
What is equity?
300
Transunion, Equifax and Experian are the three most popular examples
What is a credit bureau?
300
a type of loan that is paid back in a certain number of payments with an interest that will stay fixed for the life of the loan
What is an installment loan?
300
the act that made it illegal to refuse credit on the basis of race, color, religion, national origin, gender, marital status, etc.
What is the Equal Credit Opportunity Act?
300
the final payment of a loan that is much larger than the previous payments
What is a balloon payment?
400
the rule of thumb when it comes to deciding if you should borrow money or not
What is borrow for needs, not for wants.
400
a measure of your reliability to repay a loan
What is creditworthiness?
400
a loan not backed by collateral that relies on creditworthiness alone
What is an unsecured loan?
400
the law that requires lending organizations to identify the credit bureau that supplied information used to make a lending decision
What is the Fair Credit Reporting Act?
400
a statement in a loan contract that says if a payment is missed the entire balance of the loan is due immediately
What is an acceleration clause?
500
the three reasons discussed in class for which we may have to borrow then pay back (need all three answers)
What is home, education and health?
500
the three Cs of Credit
What is character, capacity and capital?
500
a type of charge account that allows you to carry a balance from one month to the next
What is a revolving charge account?
500
the law put into place to stop debt collections agencies from using abusive practices
What is the Fair Debt Collections Practices Act?
500
the process of grouping all of one's debts together into one smaller monthly payment
What is debt consolidation?