Credit Card ReviewCredit Card ReviewCredit Card ReviewCredit Card Review

• Some credit card companies charge ________ fees for the use of their card.

• ANNUAL

• Credit card interest rates are contained in the _________

• APR

• If you lose your credit card, you should immediately call your credit card ______________

• COMPANY

• The maximum amount a credit card holder is allowed to charge is called your ___________ ___________

• CREDIT LIMIT

• Bouncing a check will negatively impact your ________ ____________

• CREDIT SCORE

• An advantage of debit cards is that the holder is not contributing to additional _________ like credit cards.

• DEBT

• The most a credit card holder can be liable for lost or stolen cards is _____________ dollars if reported promptly.

• $50

• Credit card interest rates are _________ than bank loan interest rates.

• Higher / Lower

• HIGHER

• A danger of credit cards is ____________ buying because you don't need to have the cash available.

• IMPULSE

• Credit card holders have _______ days to report billing errors.

• 60

• In the 1900's, _________________ at general stores were a form of credit.

• ACCOUNTS

• The total amount that remains due on a credit card loan, including both principal and interest, is known as __________ _________.

• BALANCE DUE

• The use of too much credit in the 1990's led to ____________.

• BANKRUPTCY

• Which of the five C's is the most important to potential lenders.

• CAPACITY

• _____________ is property you possess that is worth more than your debts.

• CAPITAL

• A(n) ________ _________is money borrowed against the credit card limit, and it is one of the most expensive ways to use a credit card.

• CASH ADVANCE

• A loan for a specific amount that must be repaid in full, including finance charges, by a stated due date, is called a ________ ________ loan.

• CLOSED END• Note: cannot add purchases once

it is set up – only for amount approved.

• Something of value that can be sold to pay a debt is often referred to as _____.

• COLLATERAL

• Paying at a future date for the present use of goods and services or money is called _____.

• CREDIT

• Also trust extended to borrower with the understanding that the debt will be paid back at a later date.

• Borrower must also have a job or income when applying for credit.

• One who lends money or the use of goods and services for payment at a later date is known as a(n) _____.

• CREDITOR

• A service to customers called ____________ ___________ allows you to charge now and not be billed for several months.

• DEFERRED BILLING

• Since 1900, rates of interest on consumer loans have _________________.

• DROPPED

• Small loan companies, also called _________ companies, charge higher interest rates risk.

• FINANCE

• The interest you pay for the use of credit is called a ________ _____________.

• FINANCE CHARGE

• After a purchase has been made on credit, the borrower has a period of time before payment must be made. This time period is called the __________ period.

• GRACE

• A loan that is paid in equal monthly installments with a fixed interest rate is an _____________ loan.

• INSTALLMENT

• Low APR that goes up after given period is called the _______________ rate.

• INTRODUCTORY

• A(n) _______ ____ ________ is a pre-established amount that can be borrowed on demand.

• LINE OF CREDIT

• __________ ____________ are unlicensed lenders who charge illegal rates.

• LOAN SHARKS

• Banks generally charge the _______________ rates allowed by law for credit card balances.

• MAXIMUM

• Credit unions make loans available to their ______________ only.

• MEMBERS

• __________ ________ credit is credit whereby you can add purchases up to a set credit limit.

• OPEN ENDED

• A(n) _____ is a legal business where loans are made based on the value of merchandise used as collateral.

• PAWNBROKER

• The amount borrowed is known as the ____.

• PRINCIPAL

• The most common source of cash loans is the __________ lender.

• PRIVATE

• Businesses called _____ stores offer goods and services directly to consumers and include department stores, drugstores, and clothing stores.

• RETAIL

• A __________________ credit account is a type of closed-end credit.

• REVOLVING

• Finance companies charge higher rates of interest on loans because they take more ________.

• RISK

• A manufacturer-related company, called a(n) _________ ____________ company, makes loans through authorized representatives.

• SALES FINANCE

• A loan on which the goods purchased with the loan serve as collateral is called a _____ loan.

• SECURED

• Credit debt should not exceed _______ percent of your monthly income.

• 10%

• 20/10 RULE – no more than 20% of annual income; no more than

10% of monthly income

• The process of moving an unpaid credit card debt from one issuer to another is a balance _____________.

• TRANSFER

• The ________-in-Lending law requires all lenders to calculate APR the same way.

• TRUTH

• In some states, maximum interest rates are set by _____ laws.

• USURY

• If no usury laws are set, the lender can charge whatever interest rate they want.

• The annual percentage rate (APR) is the cost of credit, expressed as a ____________ percentage.

• YEARLY

• You have a right to know what is in your credit file and who has accessed your file for credit purposes in the last _______ months.

• SIX

• Credit _______________ gather, store, and sell credit information to business subscribers.

• BUREAUS

• Credit _____________ will not negatively impact your credit score, but may actually help you develop a financial payment plan to get back on track.

• COUNSELING

• Credit _______ are updated daily by computers and search procedures.

• FILES

• _____________ is favor based on some factor other than individual merit.

• DISCRIMINATION

• Debt collectors charge creditors ________ percent of the disputed amount.

• 50 (fifty)

• To maintain good credit you must not only make payments on time, but you must pay ______ your debt.

• DOWN

• It is important to check your credit report to check for _________

• ERRORS

• An __________________ credit rating means you pay your bills early and pay more than the minimum.

• EXCELLENT

• The _________ _________ Billing Act requires creditors to resolve billing errors within a specified period of time

• FAIR CREDIT

• The rating assigned to consumers by the credit bureaus is called a _______ score.

• FICO

• A summary of a person's credit history, kept at a credit bureau is a credit __________.

• FILE

• The complete record of your credit performance is called your credit ___________.

• HISTORY

• The three types of debt are single-payment, ____________, and revolving.

• INSTALLMENT

• Your credit score is a number between 300 and 850. Lenders typically give their ____________ interest rates to people with credit scores that are at least a 620 rating.

• LOWEST

• _________________ records cannot be obtained through public records.

• MEDICAL

• If you charged an item that is broken, first try to settle with the _____________.

• MERCHANT

• Debt collectors are usually allowed to call you at home after _________ p.m.

• NINE

• Financial difficulties are commonly caused by ________________

• OVERSPENDING

• A measure of your credit worthiness is your credit __________.

• RATING

• If you need to reduce the number of credit cards you hold, close the most ________ ones first.

• RECENT

• A good way to get started with credit is to open a _______________ account.

• SAVINGS

• Holding a mortgage on your house is a form of ___________ debt.

• SECURED ( something of value backing the loan)

• You have a right to know what is in your credit file and who has seen your file for credit purposes in the last _________ months.

• SIX

• A complaint about an error on a billing statement must be in writing and mailed within __________ days after you receive the statement.

• SIXTY

• Negative events or delinquencies can remain on your credit report for seven to ________ years.

• TEN

• A credit report that includes scores from the three major credit bureaus is called a __________credit report.

• TRIMERGE

• After a denial of credit, the creditor must keep for ______ months all information used to determine the denial and any written complaint from you regarding the denial.

• TWENTY-FIVE

• Credit scores among the three major credit bureaus do ______.

• VARY

• If you have a question about a possible billing error, you should never __________ directly on the bill.

• WRITE

• Too many _______ on your credit history will bring your credit score down.

• INQUIRIES

• An act giving you access to your credit file.

• Fair Credit Reporting Act

• An act giving rules for handling billing errors.

• Fair Credit Billing Act

• REMEMBER = No one can fix your credit except Y O U !

• Most credit repair offers are scams