Consumer Handbook to credit protection

Collateral -- Property offered to support a loan and subject to t to seizure if you default. Cosigner -- Another person who signs your loan and assumes umes equal responsibility for it. Credit -- The right granted by a creditor to pay in the future ture in order to buy or borrow in the present; a sum of money due a person or business. Credit Bureau -- An agency that keeps your credit record. ord. Credit Card -- Any card, plate, or coupon book used from time time to time or over and over again to borrow money or buy goods or services on credit. Credit History -- The record of how you've borrowed and repaid paid debts. Creditor -- A person or business from whom you borrow or to r to whom you owe money. Credit-related Insurance -- Health, life, or accident insurance ance designed to pay the outstanding balance of debt. Credit Scoring System -- A statistical system used to rate rate credit applicants according to various characteristics relevant t creditworthiness.

Creditworthiness -- Past and future ability to repay debts. bts. Debit Card (EFT Card) -- A plastic card, looks similar to a to a credit card, that consumers may use to make purchases, withdrawals, or other types of electronic fund transfers. Default -- Failure to repay a loan or otherwise meet the terms erms of your credit agreement. Disclosures -- Information that must be given to consumers mers about their financial dealings. Elderly Applicant -- As defined in the Equal Credit Opportunity nity Act, a person 62 or older. Electronic Fund Transfer (EFT) Systems -- A variety of systems tems and technologies for transferring funds electronically rather tha by check.

Finance Charge -- The total dollar amount credit will cost. ost. Home Equity Line of Credit -- A form of openend credit in which hich the home serves as collateral. Joint Account -- A credit account held by two or more people so e so that all can use the account and all assume legal responsibility to repay. Late Payment -- A payment made later than agreed upon in a in a credit contract and on which additional charges may be imposed. Lessee -- A person who signs a lease to get temporary use of e of property. Lessor -- A company that provides temporary use of property erty usually in return for periodic payment. Liability on an Account -- Legal responsibility to repay debt. ebt. Open-End Credit -- A line of credit that may be used over and ove over again, including credit cards, overdraft credit accounts, and home equity lines.