Credit Records and Laws

1. 17 Credit Recordsand Laws 17.1 Establishing Good Credit 17.2 Evaluating Credit and Laws

2. Credit History • Your credit history is the complete record of your borrowing and repayment performance. Chapter 17

3. Your Credit File • Every person who uses credit has a credit history on file at a credit bureau. • A credit bureau is a business that gathers, stores, and sells credit information to other businesses. Chapter 17

4. Credit Report • A credit report is a written statement of a consumer’s credit history, issued by a credit bureau to businesses. Chapter 17

5. Getting Started with Credit • Begin with a savings account. • Open a checking account. • Open a store credit account. • Get a small loan. • Apply for a credit card. Chapter 17

6. Credit Rating • Your credit rating is a measure of creditworthiness based on an analysis of your credit and financial history. • Excellent credit rating • Good credit rating • Fair credit rating • Poor credit rating Chapter 17

7. Credit • The use of someone else’s money, borrowed now with the agreement to pay it back later is called.

8. Creditor • A person or business that loans money to others

9. Debtor • A person who borrows money from others

10. Finance Charge • Total interest and fees paid associated with your credit card

11. Pawn Broker • Someone who runs a legal business that makes high interest loans based on the value of personal possessions pledged as collateral