IMPORTANT
CONSUMER INFORMATION
This
website contains some common terms and definitions, which are intended to help
you
better understand your credit transaction. Credit
costs money, so it is important that you
fully understand the terms of your credit
transaction. If you come across terms you do not
understand, look up the terms, or ask our personnel
to explain the terms to you. Ask
questions. Make certain the questions that you ask
are answered. Make certain you
understand the terms and costs of your loan.
Common Terms and Definitions
Equal
Credit Opportunity Act (ECOA)
A
federal regulation which requires lenders to promote
the availability of credit to all creditworthy applicants without regard to
race,
color, religion, national origin, sex, marital
status, or age (provided the applicant has the capacity to contract); to
whether all or part
of the applicantÕs income derives from a public assistance
program; or to whether the applicant has in good faith exercised any right
under the Consumer Credit Protection Act. The
regulation prohibits creditor practices that discriminate on the basis of any
of these
factors.
Contract
A
written binding document, describing terms of an agreement between two or more
persons. (Keep all paperwork. Later, if there
are any questions, you will have your agreement in
writing.)
Annual Percentage Rate (APR)
The cost of your credit as a yearly rate. This measures the cost
of credit expressed as a yearly interest rate. It is intended to provide a
single value for a consumer to compare the cost of
credit between one lender and another.
Finance Charge
The
dollar amount the credit will cost you. Finance charges include interest, and
may also include transaction fees and service fees.
Principal
The
amount of money owed on a debt, on which interest is calculated.
Interest
The
cost of borrowing money, generally a percentage of the amount owed.
Balance
The
total amount of money owed to a lender.
Default
Failure
to pay a debt as agreed to on a contract. When a loan is in default, the lender
may demand full payment of the remaining
debt.
Collateral
Security
pledged by a borrower to protect the
interests of the lender; in case of default, the
lender may take ownership of the security, if any, pledged by the borrower.
Credit Bureau
A
private company that keeps a record of your credit history for distribution
upon request by authorized parties. When you apply for
credit, a lender may request a credit report to review
when considering your application.
Credit History
A record containing information about you,
including your payment history on previous debts.
Credit Report
A
report of the credit history and other information about you that is kept by
credit bureaus, which may include: your name,
address, social security number, payment history
(good and bad), current and previous debts, employers, income, etc. Accurate
information on a credit report may not be legally
removed. Incorrect information may be removed by disputing the information to
the credit bureau involved.
This business is regulated by the New Mexico Regulations and Licensing Department, Financial Institutions Division
P.O. Box 25101, 2550 Cerrillos Road, Santa Fe, NM 87505, Telephone number (505) 476-4885