Positive uses of credit - ANSWER Home, feeling of security, rewards, travel,
etc.
Negative uses of credit - ANSWER Debt-overloading, overspending, impact
on financial goals, etc.
APR - ANSWER An annual percentage rate (APR) is the annual rate charged
for borrowing or earned through an investment, and is expressed as a percentage
that represents the actual yearly cost of funds over the term of a loan.
Describe the criteria for obtaining credit - ANSWER Get a secured credit card,
pay off balance in full/on-time every month, Avoid applying for numerous
accounts. (payment history, utilization, length of credit, mix of credit, shopping
for credit)
What is a security freeze? - ANSWER A security freeze is an effective tool in
preventing the most costly and difficult-to-detect form of identity theft ― false
new accounts opened in your name. New account fraud occurs when a thief uses
the victim's personal information to open up one or more new accounts for
credit or services in the victim's name.
What are usury laws? - ANSWER Usury laws are regulations governing the
amount of interest that can be charged on a loan. Usury laws specifically target
the practice of charging excessively high rates on loans by setting caps on the
maximum amount of interest that can be levied. These laws are designed to
protect consumers.
Consumer finance company - ANSWER A financial institution that specializes
in providing loans directly to consumers who are unable to secure bank loans. A
consumer finance company generally charges a higher interest rates than a bank.
Debt-consolidation loan - ANSWER Debt consolidation is a type of debt
refinancing that allows consumers to pay off other debts. In general, debt
, consolidation entails rolling several unsecured debts, such as credit cards,
personal loans or medical bills, into one single bill that's paid off with a loan.
Credit repair companies - ANSWER Removes negative items from your credit
report and help improve your FICO score, making it easier to obtain a home,
vehicle, mortgage, or insurance
Credit Counseling agency - ANSWER can advise you on your money and
debts
Debt management plan - ANSWER a plan to get you out of debt
Payday lenders - ANSWER A payday loan is a type of short-term borrowing
where an individual borrows a small amount at a very high rate of interest.
Rent-to-own - ANSWER also known as rental-purchase, is a type of legally
documented transaction under which tangible property, such as furniture,
consumer electronics, motor vehicles, home appliances and real property, is
leased in exchange for a weekly or monthly payment, with the option to
purchase at some point during the agreement.
Pawnshops - ANSWER loan an item to pawnshop for money. Have to pay
back principal plus interest
Equal credit opportunity act - ANSWER Law that makes it unlawful for any
creditor to discriminate against any applicant, with respect to any aspect of a
credit transaction, on the basis of race, color, religion, national origin, sex,
marital status, or age (provided the applicant has the capacity to contract)
Electronic funds transfer act - ANSWER The Electronic Fund Transfer Act
was passed by the U.S. Congress in 1978 and signed by President Jimmy Carter,
to establish the rights and liabilities of consumers as well as the responsibilities
of all participants in electronic funds transfer activities.
Truth in lending act - ANSWER The Truth in Lending Act (TILA) of 1968 is
United States federal law designed to promote the informed use of consumer
credit, by requiring disclosures about its terms and cost to standardize the
manner in which costs associated with borrowing are calculated and disclosed.
etc.
Negative uses of credit - ANSWER Debt-overloading, overspending, impact
on financial goals, etc.
APR - ANSWER An annual percentage rate (APR) is the annual rate charged
for borrowing or earned through an investment, and is expressed as a percentage
that represents the actual yearly cost of funds over the term of a loan.
Describe the criteria for obtaining credit - ANSWER Get a secured credit card,
pay off balance in full/on-time every month, Avoid applying for numerous
accounts. (payment history, utilization, length of credit, mix of credit, shopping
for credit)
What is a security freeze? - ANSWER A security freeze is an effective tool in
preventing the most costly and difficult-to-detect form of identity theft ― false
new accounts opened in your name. New account fraud occurs when a thief uses
the victim's personal information to open up one or more new accounts for
credit or services in the victim's name.
What are usury laws? - ANSWER Usury laws are regulations governing the
amount of interest that can be charged on a loan. Usury laws specifically target
the practice of charging excessively high rates on loans by setting caps on the
maximum amount of interest that can be levied. These laws are designed to
protect consumers.
Consumer finance company - ANSWER A financial institution that specializes
in providing loans directly to consumers who are unable to secure bank loans. A
consumer finance company generally charges a higher interest rates than a bank.
Debt-consolidation loan - ANSWER Debt consolidation is a type of debt
refinancing that allows consumers to pay off other debts. In general, debt
, consolidation entails rolling several unsecured debts, such as credit cards,
personal loans or medical bills, into one single bill that's paid off with a loan.
Credit repair companies - ANSWER Removes negative items from your credit
report and help improve your FICO score, making it easier to obtain a home,
vehicle, mortgage, or insurance
Credit Counseling agency - ANSWER can advise you on your money and
debts
Debt management plan - ANSWER a plan to get you out of debt
Payday lenders - ANSWER A payday loan is a type of short-term borrowing
where an individual borrows a small amount at a very high rate of interest.
Rent-to-own - ANSWER also known as rental-purchase, is a type of legally
documented transaction under which tangible property, such as furniture,
consumer electronics, motor vehicles, home appliances and real property, is
leased in exchange for a weekly or monthly payment, with the option to
purchase at some point during the agreement.
Pawnshops - ANSWER loan an item to pawnshop for money. Have to pay
back principal plus interest
Equal credit opportunity act - ANSWER Law that makes it unlawful for any
creditor to discriminate against any applicant, with respect to any aspect of a
credit transaction, on the basis of race, color, religion, national origin, sex,
marital status, or age (provided the applicant has the capacity to contract)
Electronic funds transfer act - ANSWER The Electronic Fund Transfer Act
was passed by the U.S. Congress in 1978 and signed by President Jimmy Carter,
to establish the rights and liabilities of consumers as well as the responsibilities
of all participants in electronic funds transfer activities.
Truth in lending act - ANSWER The Truth in Lending Act (TILA) of 1968 is
United States federal law designed to promote the informed use of consumer
credit, by requiring disclosures about its terms and cost to standardize the
manner in which costs associated with borrowing are calculated and disclosed.
