Term
| truth in lending act general definition |
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Definition
| a federal law that requires certain disclosures when extending or advertising credit. |
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Term
| another name for the truth in lending act |
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Definition
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Term
| purpose of the truth in lending act |
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Definition
| show borrowers what % they're really paying and gives them the right to back out within 3 business days. |
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Term
| disclosures of the truth in lending act |
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Definition
| 1) Amount financed. 2) Finance charge. 3) annual percentage rate. 4) Total payments. And 12 others - 18 total. |
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Term
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Definition
| 1) amount of down payment. 2)amount of any payment. 3) number of payments. 4) period of repayment. 5) dollar amount of any finance charge or the statement that there's no charge for credit. |
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Term
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Definition
| the annual percentage rate. |
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Term
| what all is encompassed in APR calculations? |
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Definition
| Combining the interest rate with other costs of the loan. |
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Term
| what does APR tell consumer? |
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Definition
| the true annual costs of borrowing. Combines the interest rate with the other costs of the loan. |
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Term
| right to recission. any exceptions? |
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Definition
| borrower has 3 business days (includes saturdays) to back out after signing the loan papers. RTR doesn't apply to credit used for the acquisition or initial construction of one's principal dwelling. |
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Term
| credit report general definition |
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Definition
| a report reflecting the credit-wortihiness of a borrower by showing past credit history. |
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Term
| the 5 disclosures that trigger terms trigger |
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Definition
| 1) cash price or the amount of the loan. 2) amount of down payment or a statement that none is required. 3) number, amount, and frequency of repayments. 4) APR. 5)deferred payment price or total payments. 5 isn't required in the case of the sale of a dwelling or a loan secured by a first lien on the dwelling that's being purchased. |
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Term
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Definition
| total dollar amount the credit will cost the borrower over the life of the loan. |
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Term
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Definition
| total payment = Ammount financed + Finance charge. |
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Term
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Definition
| the scoring system applied to a list of subjective factors that are considered relevant in evaluating credit risks. |
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Term
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Definition
| scores that provide a good assessment of how customers will perform on loan payments and therefore helps institutions balance their credit risks. |
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Term
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Definition
| Amount owed. Payment History. Length of Credit History. Application for new credit. Type of credit use. |
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Term
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Definition
| 500 to 850. Above 720 is pretty much top level. |
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Term
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Definition
| usually 1 to 5 % points higher than for good credit risks. |
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