Vocabulary to Know Flashcards
Finance Charge
The total dollar amount paid to bank for your use of credit
Equal Credit Opportunity Act
Gives all credit applicants the same basic rights
Consumer Credit
Is the use of credit for personal needs of individuals and families
Consumer Credit Reporting Reform Act
Places the burden of proof for accurate credit information on the credit bureau rather than you
Credit
An arrangement to receive cash, goods, or services NOW and pay for them in the future
Fair Credit Reporting Reform Act
Regulates the use of credit reports, requires deletions of obsolete information, and gives consumer access to his/her file and the right to have erroneous data corrected
Revolving Check Credit
A prearranged loan for a specified amount that a consumer can use by writing a special check
Simple Interest
Interest computed on principal only and without compounding.
I = P x R x T
Truth in Lending Act
If a creditor fails to disclose information that is required or gives inaccurate information, you can sue for any money lost
Closed-End Credit
Credit used for a specific purpose and is for a specified amount of money for a specified amount of time
Line of Credit
The dollar amount which may or may not be borrowed that a lender makes available to a borrower
Fair Credit Billing Act
Sets procedures for promptly correcting billing mistakes, refusing to make credit card payments on defective goods, and promptly crediting your payments
