Credit Vocab Part 2

This is called the Consumer Credit Protection Act, requiring money lenders to be explicit about the true costs of credit transactions. It also outlaws the use of threatened or actual violence to collect debts and restricts the amount of garnishments. The act also established a National Commission on Consumer Finance. What is this act called?

• Truth in Lending Act 1968

• Fair Credit Reporting Act 1970

• Equal Credit Opportunity Act 1974

• Credit Repair Organizations Act 1996

The right to take and hold or sell the property of a debtor as security or payment for a debt or duty. What is this called?

• Lien

• Mortgage

• Bailment

• Lease

The maximum amount that you can charge on your credit card. Credit card companies set your limit when you apply for a card by considering several factors, including your credit score, income, debt levels, and repayment history. What is this fee called?

• Over-the-limit fee

• Annual fee

• Balance transfer fee

• Cash advance fee

A loan with a certain limit on the amount of money you can borrow for a variety of goods and services. What is this type of credit called?

• Open-end credit

• Installment loan

• Secured loan

• Payday loan

A charge for a loan, usually a percentage of the amount loaned and/or an excess or bonus beyond what is expected or due. What is this called?

• Interest

• Dividend

• Principal

• Amortization

A measure of a person's ability and willingness to make credit payments on time. What is this called?

• Credit rating

• Net worth

• Annual income

• Credit limit

The act of taking an asset used as collateral and selling it to pay the debt. What is this called?

• Repossession

• Amortization

• Depreciation

• Appreciation

A loan money to consumers in the hope and expectation they will default and the lender will be able to take the collateral. What is this type of lending called?

• Predatory lending

• Secured lending

• Microfinancing

• Peer-to-peer lending

Failure to make minimum payment on time. What is this called?

• Delinquent

• Bankruptcy

• Overdraft

• Foreclosure

A fee charged by a lender on entering into a loan agreement to cover the cost of processing the loan. What is this fee called?

• Origination fee

• Late payment fee

• Prepayment penalty

• Annual maintenance fee