Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
PF: Chapter 5
Chapter 5: Consumer Credit
| Question | Answer |
|---|---|
| Annual percentage rate (APR) | The standardized annual cost of credit, including all mandatory fees paid by the borrower, expressed as a percentage rate. |
| Average daily balance | The average of the balances owed on each day of the billing cycle. |
| How to Avoid Identity Theft | - social security # - Check cred. report regularly. - Shred old statements - Don't carry xtra c.cards/IDS - Mail payments at p.o. - Examine charges on c. card stments. b4 paying. - Never give your c.card # or info over phone/internet(unless trust/se |
| Bank credit card | A credit card issued by a depository institution |
| Billing date | The last day of a billing cycle. Credit card transactions made after the billing date appear on the next month’s bill. |
| Cash advance | A cash loan from a credit card account. |
| Closed-end credit | Loans for a specific purpose paid back in a specified period of time, usually with monthly payments. |
| Consumer credit | Credit used for personal needs other than home purchases. |
| Convenience check | A check supplied by a credit card lender for the purpose of making a cash advance. |
| Cosigner | A person who agrees to take responsibility for repayment of a loan if the primary borrower defaults. |
| Credit | An arrangement to receive cash, goods, or services now and pay later. |
| Credit bureau | A company that collects credit information on individuals and provides reports to interested lenders. |
| Credit limit | The preapproved maximum amount of borrowing for an open-end credit account. Also known as a credit line. |
| Due date | The date by which payment must be received by the lender if the account holder is to avoid late penalties and, in some cases, interest on new transactions. |
| Electronic cash | Money in digitized format. |
| Finance charge | The dollar amount of periodic interest charged by a lender on a credit account. |
| Grace period | The time before interest begins to accrue on new transactions. |
| Late payment penalty | A penalty fee charged to an account for making a payment after the due date. |
| Minimum payment | The minimum amount that must be paid by the due date to maintain good credit standing and avoid late payment penalties. |
| Open-end credit | Preapproved continuous loans that can cover many purchases and usually requires monthly partial payments. Also known as revolving credit. |
| Overlimit charge | A penalty fee charged to an account for exceeding the credit limit. |
| Periodic rate | The stated rate divided by the number of billing periods per year. |
| Retail credit card | A credit card that can be used only at the sponsoring retailer’s outlets. |
| Smart card | A card that stores identification and electronic cash in a computer chip. |
| Travel and entertainment (T&E) Card | A credit card that requires payment of the full balance each billing cycle. |
| Teaser rate | A short-term below-market interest rate intended to encourage new customers to apply for a credit card. |
| Transaction date | The date on which you make a credit card purchase. |
Created by:
531742212
Popular Finance sets