More facts about Credit PERSONAL FINANCE MRS. BULLOCK

Mortgages  ____________ are usually 15 or 30 years and can be fixed or variable rate loans.  FHA (Federal Housing Administration) loans are available for people who fulfill ____________ guidelines.  ________________ is characterized by a lender who denies a loan to customers living in certain geographic areas.  Congress passed the Community Reinvestment Act, which ___________ banks to lend to under- privileged areas (to combat redlining).

Predatory Lending  Predatory lending uses __________ practices in any type of credit but lenders primarily target applicants for home mortgages, home equity or home refinancing.  Predatory lending generally includes ______ interest rates and fees. The payments are usually not affordable. The primary _______ is elderly and people with poor _________.  The Equal Credit Opportunity Act makes it _______ for creditors to grant credit on any characteristics other than those that reflect creditworthiness.

Collateral or Not  Collateral is something of _____ that secures a loan to protect the lender. Ex: Bringing an item to a pawn shop.  Uncollateralized loans are personal loans without _______ to cover the loan amount.

Denied Credit?  If you are denied credit by a creditor (approving the credit), you can get a ______ copy of your credit report if requested within 60 days.  Creditors cannot ______ credit based on marital status, race or age.

When You Need Help  If you are unable to pay your credit card bills, contact ________ of the credit card companies in order negotiate a new payment plan. When you mail your credit card payment on the due date, your payment will be considered ______, and the company will assess you a late fee!  The Consumer Credit Counseling Service (CCCS) can work with those who _________ you money to set up a repayment schedule you can afford to make. Most CCCSs charge a _______ for setting up and administrating a debt repayment plan.  ____________ loans combine all your debts into one loan with lower payments based on a longer repayment period or lower APR.

Protect Yourself  To protect against credit card fraud, be extremely careful about disclosing account information to ____________ callers.  If your wallet is stolen or lost, _________ each credit card company immediately! The maximum amount of unauthorized purchases you are liable for is $50.  To ________ a credit card account, cut up the card into pieces and notify the credit card company in writing to close the account.  The Truth in Lending Act of 1968 __________ creditors to state the monthly finance charge and APR on the monthly statement.  To avoid identity theft, ________ giving your social security number to anyone on the phone.

Other Facts  ____________ appears on your credit report for 10 years. An advantage of declaring bankruptcy is most debts to creditors are eliminated. You are still _____________ for tax claims and student loans.  If you have a _______ credit card with someone, both of you are responsible for the debt (even after divorce!).