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20 Cards in this Set
- Front
- Back
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credit
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an arrangement to receive cash, goods or services now and pay for them in the future
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consumer credit
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the use of credit for person needs (except a home mortgage)
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close-end credit
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one time loans that the borrower pays back in a specified period of time and in payments of equal amounts
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open-end credit
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a line of credit in which loans are made on a continuous basis and the borrower is billed periodically for at least partial payment
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line of credit
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the dollar amount, which may or may not be borrowed, that a lender makes available to a borrower
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interest
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a periodic charge for the use of credit
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revolving check credit
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a prearranged loan from a bank for a specified amount; also called a bank line of credit
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debit card
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electronically subtracts the amount of a purchase from the buyer's account at the moment the purchase is made
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home equity loan
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a loan based on the current market value of a home less the amount still owed on the mortgage
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credit bureau
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a reporting agency that assembles credit and other information about consumers
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fair credit reporting act
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regulates the use of credit reports, requires the deletion of obsolete information and gives consumers access to their files and the right to have erroneous data corrected
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equal credit opportunity act (ECOA)
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bans discrimination in the extension of credit on the basis of race, color, age, sex, marital status and other factors
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character
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the borrower's attitude toward his or her credit obligations
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capacity
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the borrower's financial ability to meet credit obligations
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capital
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the borrower's assets or net worth
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collateral
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a valuable asset that is pledged to ensure loan payments
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conditions
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the general economic conditions that can affect a borrower's ability to repay a loan
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five C's of credit
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character, capacity, capital, collateral and conditions
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fair credit billing act (FCBA)
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sets procedures for promptly correcting billing mistakes, refusing to make credit card payments on defective goods and promptly crediting payments
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consumer credit reporting reform act
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places the burden of proof for accurate credit information on the credit reporting agency
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