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economics credit cards
credit card test
17
Economics
11/14/2011

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Cards

Term
universal default
Definition
when failing to make a payment on one loan affects your interest rate on another loan ex. failing to pay con ed causes your credit card rates to rise
Term
2 ways credit card companies make money
Definition
1. low introductory rate that rises after a short period of time
2. traps in the fine print
Term
marquette decesion:
Definition
usuary laws in one state don't affect credit card companies in another state
Term
the smiley descesion
Definition
supreme court descesion that says states can't put a limit on how interest credit card companies charge
Term
the smiley descesion
Definition
supreme court descesion that says states can't put a limit on how interest credit card companies charge
Term
APR
Definition
annual percentage rate, the interest a credit card company charges over a year
Term
what determines how big your minimum payments are?
Definition
how much money is in your balance
Term
elizabeth warren was going to be the head of what
Definition
the consumer protection agency
Term
FICO score is from where
Definition
from fair isaac company
Term
FICO score shows what
Definition
your credit history with credit cards
Term
what was the credit card reform that has to do with interest rates
Definition
credit card companies can't raise your interest rates unless they have a reason to
Term
only two reasons that a credit card company can raise your interest rates
Definition
1. promotional rate ends
2. you don't make your payments
Term
what changed from 15 to 45 b/c of new credit card laws
Definition
the # of days that a credit card company must warn you before hand before raising your rates
Term
revolvers
Definition
customers who only make the minimum payments, credit card companies like them becuase they pay back thier loans and interest
Term
opt out
Definition
when credit card customers aviod a rate increase by cancelling thier card and paying off thier debt at the rate that they had when they cancelled thier card
Term
age limit on credit cards, for whom do the restrictions apply?
Definition
people under 21
Term
people under 21 must to what to get a credit card
Definition
have an adult cosign or prove that they have a source of income