37708793
Description
Flashcards by Eli Southard, updated more than 1 year ago
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Created by Eli Southard
about 4 years ago
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| Question | Answer |
| Amortization | Process of paying back a loan |
| Amount Financed | Cash price less down payment |
| Annual Percentage rate | True 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 customer's finance charge |
| Deferred Payment Price | Total of all monthly payments plus down payment |
| Down Payment | Amount of initial cash payment made when items is purchased |
| Fair Credit and Charge card disclosure Act of 1998 | 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 resolving 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 the finance charge and the annual percentage wage. The law does not dictate what can be charged |
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