is the amount of money owed on a loan. This decreases as you pay down the principal

A legal process in which a court takes over some of the finances of a person who is unable to pay his or her bills

Liquidation bankruptcy. filed by individuals or businesses with few or no assets. The chapter allows individuals to dispose of their unsecured debts, such as credit cards and medical bills.

allows individuals and businesses with consistent income to create workable debt repayment plans. In exchange for repaying their creditors, the courts allow these debtors to keep all of their property including nonexempt property

using your credit card to get cash rather than making a purchase. easy, but it’s one the costliest ways to get your hands on some cash. You may be charged cash advance fees, interest, and atm fees.

an asset pledged as security for repayment of a loan

when someone pays off several smaller loans with one larger loan. Basically, you are consolidating all of your payments into one larger payment.

can advise you on managing your money and debts, help you develop a budget, and offer free educational materials and workshops. This is a FOR PROFIT service so choose a reputable one!

consists of debts that are owed as a result of purchasing goods that are consumable and/or do not appreciate. Example - credit card debt or buying furniture on loan

A person other than the borrower has that signed the loan document and agreed to repay the loan if the original borrower stops making payments. All of the responsibility and none of the rights!

plastic card accepted by many merchants / vendors as payment. it provides individuals with revolving, open ended credit which can be drawn from repeatedly up to some preset limit. Buy now, pay later.

is the record of how a person has managed his or her credit in the past, including total debt load, number of credit lines, and timeliness of payment.

a quantified assessment of the creditworthiness of a borrower in general terms or with respect to a particular debt or financial obligation.

summarizes an individuals existing and past credit history, including applications for credit of any kind, payment record for bills, paid loans, and other public information. You're entitled to free copies of all three annually

a numeric score that uses your credit history to assess your creditworthiness. FICO is the one used by lenders.

is the possibility of a loss resulting from a borrower's failure to repay a loan or meet contractual obligations.

is a twelve-step program for people who want to stop incurring unsecured debt.

Failing to meet a financial obligation, such as if you quit paying your mortgage

is the cost of borrowing money, including interest and other fees.

interest rate remains the same over the life of the loan

legal process by which a lender takes control of a property, evicts the homeowner and sells the home after a homeowner is unable to make payments

money is legally withheld from your paycheck and sent to another party to pay your debts

a time allowed by credit card companies in which you are not charged interest on purchases.

a loan that allows a homeowner to borrow against the equity in his or her home.

when someone uses your personal information without your permission for their personal gain, usually financial.

loan that is repaid in set payments over a predetermined period of time.

is the cost to borrow money. Think of it as “rent” on money owed! When you are the borrower, you PAY this. When you have money in a savings account, you are PAID this.

is a charge a consumer pays for making a required minimum payment on a credit card after the due date.

a legal right granted by the owner of property, by a law or otherwise acquired by a creditor. If the property is sold, the holder of this must be paid before the property owner collects any profit from the sale.

the maximum amount of credit you can be extended. Some credit cards will allow you to go over but you’ll be assessed a heavy fee!

an agreement to allow borrowing as needed up to a certain amount of money. typically offered by lenders such as banks or credit unions

the process of bringing a business to an end and distributing its assets to claimants. selling off its free (unpledged) assets to convert them into cash to pay the firm's unsecured creditors.

is the lowest amount of money that you are required to pay on your credit card statement each month. You'll be paying a LONG time if you just pay this!

loan taken out to obtain a home

a lender that provides cash advances at a very high cost to consumers in exchange for one of their checks dated for some time in the future.

any unscrupulous actions carried out by a lender to entice, induce and assist a borrower in taking a loan that carries high fees, a high-interest rate, strips the borrower of equity, or places the borrower in a lower credit rated loan to the benefit of the lender.

a payment that you make before you receive goods or services, or before a debt is due. If a borrower makes prepayments, the loan balance declines more rapidly than would otherwise be possible

a fee that some lenders charge if you pay off all or part of your loan early. THIS MUST BE AGREED UPON WHEN YOU TAKE OUT THE LOAN

is a low rate offered by a credit card company as an incentive to apply for the card. The APR will go up after the introductory period is over.

is the term used to describe the taking back of property after a borrower has defaulted on payments. The lender either repossesses the collateral or pays a third-party service to do so.

allow consumers to borrow up to a preset maximum amount, such as on a credit card.

a credit card backed by a cash deposit you make when you open the account. The deposit reduces the risk to the credit card issuer: If you don't pay your bill, the issuer can take the money from your deposit.

has some asset pledged against the loan so that the lender is assured of ending up with some valuable asset if the borrower fails to pay off the loan. Ex: Mortgages and auto loans

loans that have no collateral pledged against the loan. Credit cards an example. Higher risk to the LENDER.

a federal law enacted in 1968 to help protect consumers in their dealings with lenders and creditors. Some of the most important aspects of the act concern the information that must be disclosed to a borrower prior to extending credit

the act of lending money at an interest rate that is considered unreasonably high or that is higher than the rate permitted by law.

interest rate may fluctuate during the life of the loan. based on an underlying benchmark interest rate or index that changes periodically.

loan is loan offered by a third-party company against a taxpayer's expected income tax refund. With this, an individual can get quick access to a sum of money based on their expected tax refund. Avoid if possible!

is a time during which a borrower does not have to pay interest or repay the principal on a loan. THIS IS NOT THE SAME AS DEFAULTING!!! This is just temporary relief for the debtor.

the interest rate imposed on consumers who fall significantly behind on their payments. A LOT Higher than you regular rate!

a form you fill out to see if you're eligible for undergraduate or graduate financial aid.

You establish this by being a responsible user of credit. Don’t open and close accounts frequently. Pay your bills on time all the time - a long standing account in your name with a great track record of payments is the perfect place to start.

Which is NOT one of the 5 C's of Credit?

Which credit score do banks check when underwriting a loan?

Which of the following is NOT one of the factors that make up your FICO Score

Which 2 of the 5 FICO Components carry the most weight?

How can you access your credit score?

Is your FICO score included in the annual credit report you are entitled to annually?

Which of the following will NOT improve your credit score?

Which of the following is NOT a legal reason to deny credit

Which of the following is not a protected class in lending?

used by borrowers to apply for a loan. In this, borrowers reveal key details about their finances to the lender. This is crucial to determining whether the lender will grant the request for funds or credit.

a type of payment made in cash during the onset of the purchase of an expensive good or service. The payment represents a percentage of the full purchase price. In most cases, the purchaser makes financing arrangements to cover the remaining amount owed to the seller.

All other things being equal, a high down payment will _________ your monthly payment.

All other things being equal, a LOW down payment will __________ your monthly payment.

All other factors being the same, a longer loan means a _______ monthly payment and __________ interest paid over the life of the loan.

Does everyone that applies for a loan get the same interest rate?

Which three factors make up the TOTAL COST of the item you financed?

a fee that the provider automatically charges once a year to your account for the benefits that come with that credit card. THIS IS SIMPLY THE COST YOU PAY FOR THE PRIVILEGE OF HAVING THE CARD

To keep a healthy credit score, you should no more than ______% of your available credit

a table that appears in credit card agreements showing basic info about the card’s rates and fees, including its annual percentage rate (APR) for purchases, APR for balance transfers, APR for cash advances, penalty APR, grace period, annual fee, balance transfer fee, cash advance fee, late payment fee, over-limit fee and returned payment fee

If possible, you should pay _____% of your credit card bill every month.

Moving outstanding debt on one credit card to another card. There is usually a fee associated with this action

What is the minimum amount of time that accurate information (good or bad) will remain on your credit report?

A credit card company must give __________days advance notice before changing terms

Which is NOT a condition under which a credit card company can raise the interest rate on your existing balance?

Can a credit card company close your account or lower your credit limit without notice

Which is not one of the three major credit reporting bureaus?

Student loans may only be discharged under bankruptcy if you can prove that repaying the loan will cause...