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Credit
Credit
Credit
Credit
Credit and the Law
100
An agreement to obtain money, goods, or services now in exchange for a promise to pay in the future
What is credit
100
A business that lends money or provides credit
What is a creditor
100
Determines the cost of credit on a yearly basis
What is annual percentage rate (APR)
100
An amount of time allowed to repay a debt without having to pay interest charges
What is a grace period
100
A law restricting the amount of interest that can be chrged for credit
What is a usury law
200
Person who borrows money or uses credit
What is debtor
200
Creditors charge a fee for using their money
What is interest
200
A loan given in cash by a credit card company
What is a cash advance
200
Businesses use the 3 C's of credit: capacity, character, and capital to determine if they will loan you money
What is creditworthiness
200
A record of an individual's past borrowing and repayment history.
What is a credit report
300
A type of credit used by people for personal reasons
What is consumer credit
300
Credit used by a business
What is commercial credit
300
The maximum amount a card holder can charge on a credit card
What is a credit limit
300
An interest rate that fluctuates or changes over the life of the loan
What is variable rate
300
Requires creditors to inform consumers about the costs and terms of credit
What is The Consumer Credit Protection Act
400
A measure of a person's ability and willingness to pay debts on time
What is a credit rating
400
Credit provided by a store or company for customers to buy its products
What is a charge account
400
A portion of the total cost that is paid when a product or service purchased
What is a down payment
400
Credit card companies obtain a court order to take part or all of a debtor's paycheck if her or she stops making payments
What is garnishment of wages
400
Credit applications can only be judged on the basis of financial responsibility
What is The Equal Credit Opportunity Act
500
Loans repaid in regular payments over a period of time
What is an installment loan
500
Something of value that the bank can take if a borrower does not make the required loan
What is collateral
500
The total amount it costs the borrower to have the lender finance the loan
What is a finance charge
500
The creditor takes back the item your purchased on credit
What is repossess
500
Reuires creditors to correct billing mistakes that are brought to their attention
What is The Fair Credit Billing Act