Chapter 9: Key Terms Flashcards
Auto Credit Score
Score calculated principally based on previous auto loan history
Auto Insurance Score
Using data from TransUnion credit report, it helps auto insurance companies to assess the risk of insuring a consumer by measuring the probability that an auto insurance claim might be filed.
Chip and Pin (EMV Technology)
An embedded computer chip in the card (card is more expensive), creates a unique number for each transaction and requires a pin to approve any charge
Consumer Lending
Credit cards, home equity loans, home equity lines of credit, auto loans, other recreational vehicle loans, and appliance loans
Credit Agencies
Companies that compile and maintain credit information from credit card companies, banks, mortgage companies, and other creditors for the purpose of creating personal in-depth credit reports on individuals. The major credit reporting agencies are Experian, Equifax, and TransUnion
Credit Score
A number that summarizes a person’s credit risk based on an evaluation of their credit report at a particular point in time
Dumpster Diving
A means of identity theft, that involves going through someone’s trash while looking for identity information from canceled checks, bank statements, credit card statements, federal or state tax documents, discarded credit card offers, and phone numbers
The Fair Credit Reporting Act of 1971
Provides that U.S. citizens have free access to their credit reports and credit scores from each of the three national credit agencies
FICO Score
A credit score developed by FCIO (FKA Fair Isaac Corporation) that estimates the level of future credit risk for an individual. It is calculated using a formula that evaluates many types of information in the credit report at that credit reporting agency and ranges from 300 to 850
Hard Inquiries
Inquiries made by creditors or potential creditors
Home Insurance Score
Range from 150 to 850 and is once again calculated using the TransUnion credit report. It is primarily used by home insurance companies to asses the probability that a homeowner will file a homeowner’s insurance claim
Radio Frequency Identification (RFID) Cards
The wireless use of electromagnetic fields to transfer consumer information. This is being adopted by debit and credit card companies to deter identify theft.
Scam
An acronym from the Justice Department to help avoid identity theft. Stingy with personal info Check your financial information Ask for free credit reports Maintain careful records
Secured Loans
Loans secured by collateral that may be repossessed if the loan is not repaid as agreed
Shoulder Surfing
A means of identify theft by eavesdropping on those who punch in numbers or verbally give numbers over the phone
