Studied by 1 personannual percentage rate (APR)
cost of credit on a yearly basis, expressed as a percentage
bankruptcy
legal process in which some or all of the assets of a debtor are distributed among creditors because the debtor is unable to pay his or her debts
closed-end credit
credit as a one-time loan that is paid back over a specified period of time in payments of equal amounts
collateral
a form of security that helps guarantee that the creditor will be repaid
consumer credit
use of credit for personal needs
cosigning
agreeing to take responsibility for loan payments if the other person fails to make them
credit
an arrangement to receive cash, goods, or services now and pay for them in the future
credit bureau
credit reporting agency (CRA) is a company that collects information about where you live and work, how you pay your bills, whether or not you have been sued, arrested, or filed for bankruptcy.
creditor
an entity that lends money
credit rating
a measure of a person’s ability and willingness to make credit payments on time
credit report
The individual records of consumer financial behavior kept by credit bureaus and provided to businesses when they want to evaluate potential borrowers.
FICO score
A specific credit score developed by Fair Isaac Corporation
finance charge
total dollar amount paid to use credit
grace period
time period during which no finance charges will be added to an account
identity theft
the illegal use of someone else's personal information (such as a Social Security number) especially in order to obtain money or credit.
line of credit
maximum amount of money a creditor will allow a credit user to borrow
minimum monthly payment
smallest amount that one can pay and remain a borrower in good standing
net income
income received from take-home pay, allowance, gifts, and interests
open-end credit
credit as a loan with a certain limit on the amount of money that can be borrowed for a variety of goods and services
simple interest
interest computed only on the principal
Note 
Flashcard (20)