Financial Literacy: Informed Consumer

Debt

money owed to another person or company

Credit

The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.

Collateral

Something owned (that has value) offered as security on a debt; if the debt is not repaid as agreed, the item is forfeited to the lender

Appreciating Assest

An asset that increases in value over time​​​​​​.

Depreciating Assets

An asset that loses value over time, such as a car that’s worth less every year​​​​​​​

Credit Score

A statistical number used to represent a consumer‘s creditworthiness.

Credit Bureau

A company that collects credit rating information and makes it available to creditors.

Principal

The original amount of a loan; the total amount borrowed before interest.

Interest

The additional cost a lender charges for borrowing their money.

Predatory Lending

Any lending practice where the borrower is taken advantage of by the lender.

Secured Loan

A loan backed by collateral.

FICO (Fair Isaac Corporation)

The largest and best known of several companies that provide software for calculating a person's credit score.

Financial Institution

Is a business entity that provides service as an intermediary for different types of financial monetary transactions.

Banks/Online Bank

Online banking lets you manage your money from anywhere

Credit Union

A not-for-profit financial institution that accepts deposits, make loans, and provides a wide array of other financial services and products.

Savings Account

A type of bank account designed for saving money that you don't plan to spend right away.

Checking Account 

you can deposit money with your bank that you can later withdraw or use checks or a debit card

Balance Checkbook

the process of making sure that your records of financial transactions match those of your bank

Credit Card

A plastic card issued by AA bank, building society, etc., allowing the holder to purchase goods or services on credit.

Debit Card

A card issued by a bank allowing the holder to transfer money electronically to another bank account when making a purchase.

Personal Loan 

A type of installment credit issued to a borrower by a lender, such as a bank, credit union, or online lender.

FDIC

An independent agency created by the Congress to maintain stability and public confidence in the nation's financial system.

Truth in Lending Act

Truth in Lending Act (TILA) protects you against inaccurate and unfair credit billing and credit card practices.

Fair Debt Collection Practices

Any person who regularly collects, or attempts to collect, consumer debts for another person or institution.

Fair Credit Reporting Act

protects information collected by consumer reporting agencies