1.
credit: money that a lender makes available to a borrower with the understanding that the borrower will repay the money in the future
2.
credit bureau: collect credit info on individual consumers
3.
credit histories: may be able to borrow at lower interest rates
4.
credit limit: established based on the borrower's income level, debt level, and overall credit record
5.
credit report: shows every time you have applied for credit of any kind, whether or not you have paid your bills on time, if you have paid your credit cards in full every month or carried a balance, and if you have paid late fees
6.
credit score: used to assess your creditworthiness (higher credit scores get better interest rates on loans since they have a lower risk of defaulting)
7.
equal credit opportunity act: prohibits creditors (people who provide credit) from denying credit based on gender, race, religion, etc...
8.
fair crediting report act: limits the sharing of you financial info only to firms that have legal purpose to evaluate this info
9.
fair isaac corporation: credit scores are calculated based on this model
10.
identity theft: occurs when someone uses your personal information without your permission for personal gain
11.
installment credit: used for specific purchases but allows the borrower more time to repay the money
12.
interest: the price one pays for the right to use another party's money
13.
noninstallment credit: credit that is extended for a short term
14.
overdraft protection: can be linked to a checking account--bank would move negative balance into checking account from savings (give you notice)
15.
phishing: pretexting that occurs online
16.
pretexting: occurs when someone improperly accesses your personal info by posing as someone who needs data for some reason or another
17.
principal: the total amount of money outstanding the loan
18.
reserve: money you don't want to use up to 6 months worth of bills (living expenses)
19.
revolving open-end credit: allows consumers to borrow up to some preset maximum amount
20.
shoulder surfing: occurs when someone in a public place skims personal information to use against you
21.
skimming: involves copying your credit/debit card numbers from your cards