| A | B |
|---|
| Credit card | Access a line of credit that has been established in advance |
| Credit limit | Maximum dollar amount that can be borrowed |
| Annual Percentage Rate (APR) | The cost of credit expressed as a yearly interest rate |
| Schumer Box | Credit card issuers are required to disclose the terms and fees of credit cards in an easy to read box format |
| Credit | Goods, services, or money received in exchange for a promise to pay a definite sum of money at a future date. |
| Credit report | A record of a consumer’s credit history/Affects one’s ability to acquire credit |
| Credit history | A record of transactions involving credit use/Affects one’s ability to acquire credit |
| Credit inquiry | A request for your credit. Can be done by businesses you apply to for credit or whom pre-approve you for credit |
| Medical information | Is not on a consumer’s credit report, but late medical payments are. |
| Percentage of current debt compared to the total credit available is reviewed by potential lenders | Amount of debt currently held at 25% of the total amount of available credit |
| Credit Reporting Agency (CRA) | Keeps a record of a consumer’s credit transactions and compiles credit reports |
| The three main credit reporting agencies are: | Equifax, Trans Union, Experian |
| One free credit report annually from all three credit agencies | www.annualcreditreport.com |
| Mistakes in Credit Reports | More than 50% of the credit reports checked in a study contained errors |
| Fair Credit Reporting Act | Designed to promote accuracy and ensure privacy of information in credit reports |
| Correcting Errors on Credit Reports | CRA must report to the consumer within 30 days |
| Negative information is usually removed from credit file after seven years | except bankruptcy which is removed after 10 years |
| Credit Scores | A mathematical tool created to help lenders evaluate the risk associated with lending money to customers. |
| Credit Scores range from | 150-950 |
| Credit Scores are not listed on | A credit report |
| The top category for weighing your credit | 35%-Payment history |
| PAC | Pre-Authorized Check |
| ATM | Automated Teller Machine |
| PIN | Personal Identification Number |
| Regional Bank | A bank that is in a geographical region like Alpine Bank |
| Local Bank | A bank that is only local in a particular town like Grand Valley Bank |
| National Bank | Banks that are common across the country like Wells Fargo |
| Reported theft of card within 2 business days | Liable for $50.00 |
| Reported theft of card after 2 business days | Liable for up to $500.00 |
| Depository Institution | Businesses that provide financial services |
| Two Types of Depository Institutions | Commercial Banks, Credit Unions |
| For Profit Depository | Commercial Banks |
| Non-Profit Depository | Credit Unions |
| FDIC | Federal Deposit Insurance Corporation/Covers Commercial Banks |
| FDIC Coverage Limits | $250,000 |
| NCUA | National Credit Union Administration/ Covers Credit Unions |
| Mobile Banking | Uses devices such as tablets, phones, or other mobile devices to do the same thing as on-line banking |
| Contactless Payments | Transactions completed with no physical connection between the payment device and the Point of Sale (POS) device or store clerk |
| Overdraft Fee | Charged if you withdraw more money from your account than is available |
| ATM Fee | Charge for using an ATM that belongs to another depository institution |
| Minimum Balance Fee | Some accounts have a minimum account balance; fee charged if you go below that balance |
