Finance U8 Credit
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24 Terms
Used to finance a specific purchase for a specific amount of time.
Closed-end Credit
Installment Loans
Used for any purchase as long as you’re under the credit limit.
Open-end Credit
Revolving Credit
Debt that is tied to a specific asset that can be used as collateral and repossessed.
Closed-end Credit
Secured Debt
Debt that is not tied to a specific asset; no collateral that can be repossessed.
Open-end Credit
Unsecured Debt
Terms of this credit remain constant during the life of the loan.
Closed-end Credit
Fixed Rate
Terms of this credit vary during the life of the loan.
Open-end Credit
Variable Rate
Closed-end Credit
Installment Loans
Secured Debt
Fixed Rate
Ex. Car Loans, mortgage, student loan (unsecured)
Open-end Credit
Revolving Credit
Unsecured Debt
Variable rate
Ex. Credit Cards
Service Credit
Revolving Credit
Unsecured Debt
Ex. Phone bill, gas, electric, water, all utilities
Credit Card Agreement formally known as?
The Schumer Box
The person who borrows money from another
Debtor
A person or business that loans money to others
Creditor
The use of someone else’s money, borrowed borrowed now with the agreement to pay it back later.
Credit
Property pledged to assure repayment of a loan
Collateral
The use of one credit card to pay the balance on another credit card
Balance Transfer
The value of property you possess after deducting your debts
Capital
A credit repot is issued by
Credit bureau
Credit report contain:
Account detail - installment or revolving, amount, rate, etc.
Personal information
Public record information
Credit information - new/old loans
Requests for credit history - who looked at your file
FICO score Excellent
781-850
FICO score Good
721-780
FICO score Fair
661-720
FICO score Poor
601-660
FICO score Very Poor
300-600
Ways to fix credit score
Pay bills on time
Improve payment history
Keep balances low on credit cards and revolving credit
Pay off debt rather than moving it around
Open accounts slowly - not several at a time
Note 
Flashcards (50)