Page 92 - Book1E
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Glossary
Revolving charge card (often called credit card): Issued to consumers by major department stores and banks and requires a minimum monthly payment.
Secured credit card: Issued by a major bank if the consumer deposits cash equal to the credit card limit into the issuing bank. Usually used as a step to rebuilding poor credit.
Secured debt: Debt that is backed by collateral. (See page 11.) Statute of limitations: The legal length of time a creditor has to sue
you after you default on a loan or debt.
Uncollectible: An account that has gone past a certain length of time without payment.
Unsecured creditor: Creditor with no collateral to cover money it loans. Most credit card companies are unsecured creditors. Debt collectors are employed most frequently by unsecured creditors.
Unsecured debt: Money that is loaned by a creditor without requiring a consumer to have property that can be used to repay the loan. (See page 12.)
