credit business quiz
Terms in this set (23)
3 major types of credit
1. sales credit (between company & customer)
2. loan credit (between lender (bank) & customer)
3. trade credit (between businesses)
what are two well known bank issued credit cards
master card and visa card
a contract with a promise to pay a supplier a specific sum of money at a definite time
something of value that a borrower lets the lender claim if a loan is not repaid
Someone who promises to pay if the borrower fails to pay
Pros of using a credit card
2. immediate possession
4. credit rating
5. useful for emergencies
Cons of using a credit card
2. careless buying
3. higher prices
Equal Credit Opportunity Act
Gives all applicants the same rights. Credit providers may not discriminate based on: Age, Social Security, Housing loans.
Truth in Lending Act
An act which requires lenders to inform borrowers of all direct, indirect and true costs of credit.
Fair Credit Billing Act
Provides consumers with a means to dispute a billing error on open-ended credit accounts (credit and charge cards)
Fair Credit Reporting Act
Act that protects privacy of background information and ensures that information supplied is accurate.
Consumer Credit Reporting Reform Act
places the burden of proof for accurate credit information on the credit reporting agency
Fair Debt Collection Practices Act
Prohibits unfair, abusive, and deception methods of collecting debt
filed for bankruptcy
cried because her dad didn't love her
wanna be dancer
Interest = Principal x Rate x Time
a credit card carrying the name of an organization to which a portion of the money spent using the card is paid.
an initial payment made when something is bought on credit.
loans repaid in regular payments over a period of time
the price paid for the use of borrowed money
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