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20 Cards in this Set

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