Credit: the supplying of money, goods or services at present in exchange for the promise of future payments
Principle: original amount borrowed
Interest: fee for the use of creditors money
Secured Credit: trading collateral for a loan
Unsecured Credit: no collateral is exchanged
Single Payment- pay in full at the time the bills are presented
Capacity- total earning power
Capital- what a person owns
Equal Credit Opporotunity Act- prohibits discrimination based on demographic information
Fair Credit Reporting Act- credit bureau must delete information that is 7 or more years old; bankruptcy after 10 years
Annual Fee- amount needed to pay on the card
Minimum Payment- amount that has to be paid each month in order to avoid fees
Grace Period- the amount of time to pay the balance without finance charges
Finance Charges- the cost of credit; interest charged for not paying the
Principle: original amount borrowed
Interest: fee for the use of creditors money
Secured Credit: trading collateral for a loan
Unsecured Credit: no collateral is exchanged
Single Payment- pay in full at the time the bills are presented
Capacity- total earning power
Capital- what a person owns
Equal Credit Opporotunity Act- prohibits discrimination based on demographic information
Fair Credit Reporting Act- credit bureau must delete information that is 7 or more years old; bankruptcy after 10 years
Annual Fee- amount needed to pay on the card
Minimum Payment- amount that has to be paid each month in order to avoid fees
Grace Period- the amount of time to pay the balance without finance charges
Finance Charges- the cost of credit; interest charged for not paying the