1. Chapter 16 Credit in America
MYPF CHAPTER 16
13-SEPT-2001
Chapter 16 Credit in America
What Is Credit?
Money borrowed to buy something now, with the agreement to pay for it later.
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2. The Vocabulary of Credit
Borrower or debtor
Creditor
Capital
Collateral
Principal
Finance charge
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3. Advantages and Disadvantages of Consumer Credit
Purchasing power
Emergency funds
Convenience
Deferred billing
Proof of purchase
Safety
Disadvantages
Higher costs
Finance charges
Tie up income
Overspending
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4. Kinds of Credit Open-ended credit Closed-end credit Service credit
Open 30-day accounts
Revolving credit accounts
Credit card terms
Closed-end credit
Service credit
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5. Credit Card Terms Annual percentage rate (APR)
Free period (grace period)
Annual fees
Transaction fees and late fees
Method of calculating the finance charge
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6. Sources of Credit Retail stores Credit card companies
Banks and credit unions
Finance companies
Pawnbrokers
Private lenders
Other sources of consumer credit
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7. What is good credit
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8. Credit Records Your credit file How information is gathered and used
Types of information stored
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9. Credit Bureaus Major U.S. credit bureaus Credit history Credit report
TransUnion
Experian
Equifax
Credit history
Credit report
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10. Credit Ratings Point system How reliably money is paid back
Excellent credit rating
Good credit rating
Fair credit rating
Poor credit rating
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11. Credit Reports Summary of information Public record information
Credit information
Account detail
Requests for credit history
Personal information
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12. Credit Laws Consumer Credit Protection Act Fair Credit Reporting Act
Fair Credit Billing Act
Equal Credit Opportunity Act
Fair Debt Collection Practices Act
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