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Creado por Katrina Smith
hace casi 2 años
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Pregunta | Respuesta |
Amortization | Process of paying back a loan (principal plus interest) by equal periodic payments |
Amount Financed | Cash price less down payment |
Annual Percentage Rate (APR) | Ture or effective annual interest rate charged by sellers. Required to be stated by Truth in Lending Act |
Average Daily Balance | Sum of Daily balances divided by number of days in billing cycle |
Cash Advance | Money borrowed by holder of credit card. it is recorded as another purchase and is used in the calculation of the average daily balance. |
Credit Card Act | A federal statute passed in 2009 to provide fair and transparent practices to the extension of credit. |
Daily Balance | Calculated to determine customers finance charge: previous balance + any cash advantage + purchases - payments |
Deferred payment price | Total of all monthly payments plus down payment |
Down Payment | Amount of initial cash payment made when item is purchased |
Fair credit and charge card disclosure act of 1988 | Act that tightens controls on credit and companies soliciting new business. |
Finance charge | Total payments - Actual Loan cost |
Installment Loan | Loan paid off with a series of equal periodic payments |
Loan Amortization Table | Table used to calculate monthly payments |
Open-end credit | Set payment period. Also, additional credit amounts can be added up to a set limit. It is a revolving charge account. |
Outstanding balance | amount left to be paid on a loan |
Revolving charge amount | Charges for a customer are allowed up to a specific maximum, a minimum monthly payment is required, and interest is charged on balance outstanding. |
Truth in Lending Act | Federal Law that requires sellers to inform buyers, in writing, of (1) the finance charge and (2) the annual percentage rage. The law does not dictate what can be charged. |
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