managing credit Flashcards
annual percentage rate
The interest rate a credit card user will be charged on the unpaid portion of their balance
bankruptcy
a legal process that relieves debtors of the responsibility of paying their debts or protects them while they are trying to repay
collections
attempted recovery of a past due credit, obligation, or death
credit
in agreement in which a borrower receives something of value now, and agrees to repay the weather in the future generally, with interest
credit bureau
A company that collects and sells information about how individual people manage their credit
credit counselor
an individual who works for an accredited nonprofit specializing in helping consumers repay debt in a responsible manner 
credit history
A record of a persons use of credit overtime
credit report
A document containing an individuals financial information focusing on payment of their credit obligations overtime 
credit score
A three digit number ranging from 300 to 850 based on an individuals credit history
credit utilization rate
A measurement of your outstanding debt, divided by your total available credit
default
long-term failure to repay a loan according to the terms agreed-upon 
FICO score
The most commonly used credit score
net worth
your assets minus your liabilities
grace period
Time period During which a borrower can pay the full balance of credit that is due with no finance charges.
credit freeze
A consumer request that requires the credit bureaus to deny all access to a consumers credit information 
fixed rate loan
a loan, for which the interest rate does not change over the life of the loan
debt collector
A person or company hired by a creditor to collect the overdue balance on an account 
prime rate
The interest rate that banks offer to their best business customers

creditworthy
The potential of the creditor, they must determine whether you are a good risk 
credit management
means following an individual plan for using credit wisely 
rewards program
Earn points, cashback, airline miles, or other special words that you can redeem at a later date
credit inquiry
A request by a business with permissible purpose, to check your credit
credit repair
The process of reestablishing, a good credit rate
billing statement
an itemized bill showing charges credits and payments posted to your account during the billing period
debt consolidation
A finance company loans you money to pay off your debt 
line of credit
a pre-established amount that can be borrowed on demand with no collateral
alias
A note on your credit report that indicates other names used for your financial accounts
minimum payment
The lowest amount of money that you are required to pay on your credit card statement each month
variable rate loan
The interest rate goes up and down with inflation or other economic factors
garnishment
a legal process that allows part of your paycheck to be withheld for a payment of a debt
