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39 Cards in this Set
- Front
- Back
installment loan
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a loan repaid with interest in equal periodic payments
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credit card
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a plastic card issued by a bank, business, etc., for the purchase of goods or services on credit
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student loan
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loan designed to help students pay for university tuition, books, and living expenses; differs from other loans in that the interest rate is substantially lower and the repayment schedule is deferred while the student is still in full time education
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mortgage
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the charging of real property by a debtor to a creditor as a security for a debt, on the condition that it shall be returned on payment of the debt within a certain period; a loan obtained through the conveyance of property as security
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annual percentage rate
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the interest rate for a whole year rather than just a monthly fee/rate, as applied on a loan, mortgage loan, credit card, etc.
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annual fee
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yearly fee associated with having a credit card is a separate fee from interest rate on purchases
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credit limit
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the maximum amount of credit that a financial institution or other leader will extend to a debtor for a particular line of credit
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finance charge
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any fee representing the cost of credit, or the cost of borrowing; interest accrued on, and fees charged for, some forms of credit
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origination fee
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fee charged by a lender on entering into a loan agreement to cover the cost of processing the loan
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loan term
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the amount of time set by the lender for a buyer to pay a mortgage
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grace period
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time past the deadline for an obligation during which a late penalty that would have been imposed is waived
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over-the-limit fee
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a fee charged when one exceeds a credit limit, even if that happens because of fees or interest
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late fee
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a charge levied against a client by a company or organization for not paying a bill or returning a rented or borrowed item by its due date
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universal default
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practice in the financial services industry in the US for a particular lender to change the terms of a loan from the normal terms to the default terms
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debt
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something, typically money, that is owed or due
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capacity
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the maximum amount that something can contain; the amount that something can produce
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collateral
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something pledged as a security for the repayment of a loan, to be forfeited in the even of a default
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character
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the distinctive nature of something; the mental and moral qualities distinctive to an individual
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credit report
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analysis of a person's credit standing over a period of time
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credit history
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a record of an individual's or a company's past borrowing and repaying, including information about late payments and bankruptcy
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credit score
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a number assigned to a person that indicated to lenders their capacity to repay a loan
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Truth in Lending Act
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federal law designed to protect consumers in credit by requiring clear key terms of the lending arrangement and all its costs
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Fair Credit and Charge Card Disclosure Act
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part of Truth in Lending Act; federal law that ensures you get the facts you need to make wise credit choices
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caveat emptor
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the principle that the buyer alone is responsible for checking the quality and suitability of goods before a purchase is made
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debt-to-income ratio
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percentage of a consumer's monthly gross income that goes toward paying debts
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minimum payment
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the minimum amount that you must pay, usually monthly, on a home equity loan or line of credit
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down payment
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an initial payment made when something is bought on credit
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FICO score
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credit score calculated with software from Fair Isaac Corporation
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Equifax
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a consumer credit reporting agency in the US, considered one of the three largest American credit agencies
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Experian
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a consumer credit reporting agency in the US; considered one of the three largest American credit agencies
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Trans Union
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a consumer credit reporting agency in the US; considering one of the three largest American credit agencies
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Classic card
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brand name for the standard card issued by VISA
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Gold card
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a charge card or credit card issued to people with a high credit rating and giving benefits not available with the standard card
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Platinum card
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a credit card made available to individuals with high credit ratings, which carried certain privileges that are unavailable to holders of other cards
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rebate card
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a debit card that provides funds promised by a business as a rebate; they are often offered to those who make a specific purchase, or for loyalty to a company by accumulating a certain amount of money or number of points worth of purchases from a particular company
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secured card
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a credit card guaranteed by a deposit in a savings account or certificate of deposit
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unsecured card
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a credit card that is not secured by collateral
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cash advance
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money borrowed against a charge or credit card, which accrues interest differently than charged purchases, sometimes at a higher rate and without a grace period
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bankruptcy
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a legally declared or recognized condition of insolvency of a person or organization
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