Chapter 6
Terms
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- Underwriting
- Reviewing a loan for soundness
- Fico Score
- Dominant Credit Scoring System
- Unsecured Loan
- Loan backed by borrowers reputation and creditworthiness
- Grace Period
- Period for which no interest charges occrue if balance is paid in full by due date
- Secured Loan
- Loan backed by some item of value in case the borrower defaults
- Fair Debt Collection Practices Act (FDCPA)
- Protects consumers from unfair collection techniques
- Consumer reporting Agency (CRA)
- Company that compiles and sells credit records
- Collateral
- Item used to secure a loan
- Open-End Loan
- Loan with flexible principal and term
- Installment Loan
- Loan with fixed payments, rate of interest, and lenght of term
- Truth in Lending Act
- Gurantees that all information about costs of a loan is provided in writing