Credit Study Guide
Number of years you've used credit.
Length of Credit History
Promotes the accuracy and privacy of information and enables consumers to receive a copy of their credit report.
The Fair Credit Reporting Act
BETTER CREDIT=BETTER INTEREST RATES!!!
true
Credit is based on TRUST between the creditor and the credit user, or borrower.
true
FICO is the organization that computes your score for the 3 credit bureau's.
true
Good credit scores show you use your credit cards, loans RESPONSIBLY!
true
Late payments have the greatest negative impact on your FICO score.
true
Overusing credit cards is a major reason many people get into financial trouble.
true
The more time you take to pay back the money you borrow or charge, the more you will pay in interest.
true
When you buy with credit instead of giving money for your purchases, you promise to pay later.
true
A credit report is an organized list of the information in your credit file. Credit reports may include which of the following?
A list of companies that have given you credit or loans, The total amount for each loan or credit limit for each credit card, How often you paid your credit or loans on time, and the amount you paid
The percent charged every year on top of any outstanding payments currently on your card.
APR
When you apply for credit, the following factors determine the amount of finance charges you may pay.
Amount of Credit Used, Interest Rate, Length of Repayment Period
The type of credit where it may be necessary to borrow MONEY in order to buy items you need or want.
Cash Loan
Fair Issac Compancy is abbreviated as what?
FICO
In the case of an error in credit billing or electronic fund transfer, these acts protect the consumer by following established procedures in resolving mistakes.
Fair Credit Billing Act & The Electronic Fund Transfer Act
Often used to charge expensive items such as a major appliance or piece of furniture and the buyer pays for the merchandise according to a set schedule of payments.
Installment Accounts
You can begin to establish a good credit rating WITHOUT a credit card by doing which of the following?
Paying Rent & Utilities on Time, holding a job, maintaining checking or savings accounts
Which of these factors below affect credit costs?
Size of the Loan or the Amount of Credit Used, Annual Percentage Rate, Repayment Time
Protects consumers from being discriminated by sex, race, marital status, religion or age when obtaining credit. Consumers also have the right to know the reasons if they are being denied credit.
The Equal Credit Opportunity Act
Ensures debt collectors follow specific procedures and protocols when collecting debts and protects against deceptive, abusive or unfair collection practices.
The Fair Debt Collect Practices Act
A credit transaction by which a person rents a car according to certain restrictions.
Vehicle Leasing
The fee you pay per year in order to keep your credit card.
annual fee
The amount owed on the card.
balance
Benefits and bonuses a credit card company offers to entice you to open a credit card, such as cash back or travel rewards.
cash back/rewards
Allows you to buy goods and services now and pay for them later.
credit
The credit reporting companies combine the information from your different credit, loan and payment reports into a single credit file to come up with what?
credit report
3 digit number, usually between 300-850, representing how responsibly you are when paying back borrowed money.
credit score
The smallest amount you can pay toward your credit card bill.
minimum payment
