SPENDING AND CREDITUNIT 4 VOCABULARY

CREDIT BUREAU

• FIRMS THAT COLLECT, STORE, ANALYZE, SUMMARIZE AND SELL CREDIT RELATED INFORMATION ON PEOPLE AND FIRMS FOR A FEE

CREDIT REPORT

• REPORT CARD ON YOUR CREDIT

ANNUAL PERCENTAGE RATE (APR)• COST OF CREDIT EXPRESSED AS A

YEARLY RATE• INCLUDES: • INTEREST RATE• POINTS• BROKER FEES• CERTAIN OTHER CREDIT CHARGES

THAT THE BORROWER IS REQUIRED TO PAY

FINANCE CHARGE• TOTAL COST OF BORROWING• INCLUDES:• INTEREST CHARGES• COMMITMENT FEES• OTHER CHARGES PAID BY BORROWER TO

THE LOAN FACILITY

CREDIT• AGREEMENT BASED LARGELY ON TRUST UNDER

WHICH GOODS, SERVICES, OR MONEY IS EXCHANGED AGAINST A PROMISE TO PAY LATER.

COMPARISON PRICING

• TO SHOP FOR BARGAINS BY COMPARING THE PRICES OF COMPETING BRANDS OR STORES

DEBT COLLECTOR• A PERSON OR AGENCY HIRED

TO COLLECT MONEY THAT IS OUTSTANDING.• HAVING THIS HAPPEN

NEGATIVELY AFFECTS YOUR CREDIT.

STICKER PRICE

• THE LISTED PRICE FOR AN ITEM.• USUALLY, IT IS THE MANUFACTURER’S

SUGGESTED RETAIL PRICE (MSRP).• IT MAY BE NEGOTIABLE.