Term
|
Definition
| An arrangement to receive cash, goods, or services now and pay for them in the future |
|
|
Term
|
Definition
| The use of credit for personal needs (except a home mortgage) |
|
|
Term
|
Definition
| One time loans that the borrower pays back in a specified period of time and in payments of equal amounts |
|
|
Term
|
Definition
| A line of credit in which loans are made on a continuous basis and the borrower is billed periodically for at least partial payment |
|
|
Term
|
Definition
| The dollar amount, which may or may not be borrowed, that a lender makes available to a borrower |
|
|
Term
|
Definition
| A periodic charge for the use of credit |
|
|
Term
|
Definition
| A prearranged loan from a bank for a specified amount; also called a bank line of credit |
|
|
Term
|
Definition
| Electronically subtracts the amount of a purchase from the buyer's account at the moment the purchase is made |
|
|
Term
|
Definition
| A loan based on the current market value of a home less the amount still owed on the mortgage |
|
|
Term
|
Definition
| A reporting agency that assembles credit and other information about consumers |
|
|
Term
|
Definition
| Regulates the use of credit reports, requires the deletion of obsolete information, and gives consumers access to their files and the right to have erroneous data corrected |
|
|
Term
| Equal Credit Opportunity Act (ECOA) |
|
Definition
| Bans discrimination in the extension of credit on the basis of race, coler, age, sex, marital status, and other factors |
|
|
Term
|
Definition
| The borrower's attitude toward his or her credit obligations |
|
|
Term
|
Definition
| the borrower's financial ability to meet credit obligations |
|
|
Term
|
Definition
| The borrower's assets or net worth |
|
|
Term
|
Definition
| A valuable asset that is pledged to ensure loan payments |
|
|
Term
|
Definition
| The general economic conditions that can affect a borrower's ability to repay a loan |
|
|
Term
| Fair Credit Billing Act (FCBA) |
|
Definition
| Sets procedures for promptly correcting billing mistakes, refusing to make credit card payments on defective goods, and promptly clearing payments |
|
|
Term
| Consumer Credit Reporting Reform Act |
|
Definition
| Places the burden of proof for accurate credit information on the credit reporting agency |
|
|
Term
|
Definition
| A federal law that requires creditors to disclose the annual percentage rate (APR) and the finance charge as a dollar amount |
|
|
Term
|
Definition
| The total dollar amount paid to use credit |
|
|
Term
| Annual Percentage Rate (APR) |
|
Definition
| The percentage cost (or relative cost) of credit on a yearly basis. The APR yilds a true rate of interest for comparison with other sources of credit |
|
|
Term
|
Definition
| Interest computed on principal only and without compounding |
|
|
Term
|
Definition
| A method of computing interest when more than one payment is made on a simple interest loan |
|
|
Term
|
Definition
| A method of computing interest in which interest is calculated on the full amount of the original principal |
|
|
Term
|
Definition
| The assessment of finance charges after payments made during the billing period have been subtracted |
|
|
Term
|
Definition
| A method of computing finance charges that gives no credit for payments made during the billing period |
|
|
Term
| Average Daily Balance Method |
|
Definition
| A method of computing finance charges that uses a weighted average of the account balance throughout the current billing period |
|
|
Term
|
Definition
| A mathematical formula to determine how much interest has been paid at any point in a loan term |
|
|
Term
|
Definition
| Any type of insurance that ensures repayment of a loan in the even the borrower is unable to repay it |
|
|
Term
| Fair Debt Collection Practices Act (FDCPA) |
|
Definition
| A federal law, enacted in 1978, that regulates debt collection activities |
|
|
Term
| Consumer Credit Conseling Services (CCCS) |
|
Definition
| a local, nonprofit organization that provides debt counseling services for families and individuals with serious financial problems |
|
|
Term
|
Definition
| One type of personal (or straight) bankruptcy in which many debts are forgiven |
|
|
Term
|
Definition
| A voluntary plan that a debtor with regular income develops and proposes to a bankruptcy court |
|
|
Term
|
Definition
|
|
Term
|
Definition
| A nonprofit organization whose member-owners may save money on certain products or services |
|
|
Term
|
Definition
| information about freshness or shelf life found on the package of a perishable product |
|
|
Term
|
Definition
| the use of a standard unit of measurement to compare the prices of packages of different sizes |
|
|
Term
|
Definition
| a partial refund of the price of a product |
|
|
Term
|
Definition
| a written guarantee from the manufacturer or distributor of a product that specifies the conditions under which the product can be returned, replaced, or repaired |
|
|
Term
|
Definition
| an agreement between a business and a consumer to cover the repair costs of a product |
|
|
Term
|
Definition
| the attempt by an impartial third party to resolve a difference between two parties through discussion and negotiation |
|
|
Term
|
Definition
| the settlement of a difference by a third party whose decision is legally binding |
|
|
Term
|
Definition
| A court that settles legal differences involving amounts below a set limit and employs a process in which the litigants usually do not use a lawyer |
|
|
Term
|
Definition
| A legal action taken by a few individuals on behalf of all the people who have suffered the same alleged injustice |
|
|
Term
|
Definition
| One of a network of publicly supported community law offices that provide legal assistance to consumers who cannot afford their own attorney |
|
|
Term
|
Definition
| a legal document that defines the conditions of a rental agreement |
|
|
Term
|
Definition
| an individually owned housing unit in a building with several such units |
|
|
Term
|
Definition
| a form of housing in which a building constaining a number of housing units is owned by a nonprofit organization whose members rent the units |
|
|
Term
|
Definition
| a housing unit that is fully or partially assembled in a factory before being moved to the living site |
|
|
Term
|
Definition
| restrictions on how the property in an area can be used |
|
|
Term
|
Definition
| a portion of the price of a home that the buyer deposits as evidence of good faith to indicate a serious purchase offer |
|
|
Term
|
Definition
| a long-term loan on a specific piece of property such as a home or other real estate |
|
|
Term
|
Definition
| Prepaid interest charged by a lending institution for the mortgage; each discount point is equal to 1 percent of the loan amount |
|
|
Term
|
Definition
| a fixed-rate, fixed-payment home loan with equal payments over 15, 20, or 30 years |
|
|
Term
|
Definition
| the reduction of a loan balance through payments made over a period of time |
|
|
Term
|
Definition
| a home loan with fixed monthly payments and a large final payment, usually after three, five or seven years |
|
|
Term
| Adjustable-rate mortgage (ARM) |
|
Definition
| a home loan with an interest rate that can change during the mortgage term due to changes in market interest rates; also called a flexible-rate mortgage or a variable-rate mortgage |
|
|
Term
|
Definition
| a limit on the increases and decreases in the interest rate charged on an adjustable-rate mortgage |
|
|
Term
|
Definition
| a limit on the payment increases for an adjustable-rate mortgage |
|
|
Term
|
Definition
| a home loan agreement that provides for payment increases to allow the amount owed to be paid off more quickly |
|
|
Term
|
Definition
| an interest rate subsidy from a home builder, a real estate developer or by the buyer that reduces a home buyer's mortgage payments during the first few years of the loan |
|
|
Term
|
Definition
| a cash advance based on the paid-up value of a home; also called a home equity loan |
|
|
Term
|
Definition
| a loan based on the equity in a home, that provides elderly homeowners with tax-free income and is paid back with interest when the home is sold or the homeowner dies |
|
|
Term
|
Definition
| the process of obtaining a new mortgage on a home to get a lower interst rate |
|
|
