Investopedia

Continue to Site »

Triggering Term

Filed Under » , , ,
Dictionary Says

Definition of 'Triggering Term'

A word or phrase that when used in advertising literature requires the presentation of the terms of a credit agreement so that individuals can compare credit offers on a fair and equal basis.

Open-end and closed-end credit each have a set of triggering terms associated with them; if a single one is used in advertising material, then the full set of credit terms must also be displayed so as not to confuse or deceive consumers.

Triggering terms are set and monitored by the Federal Trade Commission, in the United States.
Investopedia Says

Investopedia explains 'Triggering Term'

Credit literature and advertising must abide by the Truth In Lending Act passed in 1969, which requires that lenders disclose key terms of an agreement, such as how finance charges are computed, when a charge can be imposed and charges computed as an annual percentage rate.

Triggering terms help clarify the conditions under which a consumer is borrowing money. It is important to read carefully all of the disclosures to get a true picture of the cost of borrowing money. Being oblivious to the terms of a loan and the charges that can be incurred can cause a consumer to become buried in debt.

Articles Of Interest

  1.

    Understanding Your Mortgage

    We walk through the steps needed to secure the best loan to finance the purchase of your home.

  2. Home-Equity Loans: What You Need To Know

    We shed light on why consumers decide to use this form of debt and whether it is a good alternative.

  3. APR and APY: Why Your Bank Hopes You Can't Tell The Difference

    Banks use these rates to entice borrowers and investors. Find out what you're really getting.

  4. Home-Equity Loans: The Costs

    Learn the factors to consider when comparing the different programs offered by various lenders.

  5. Understanding The Mortgage Payment Structure

    We explain the calculation and payment process as well as the amortization schedule of home loans.

  6. What's On A Consumer Credit Report?

    A look at the various components and considerations that go into one's credit report and credit score.

  7. Top 5 Ways Restaurants Make You Spend More

    The next time you eat out, watch for these common restaurant tricks that undermine your dining budget.

  8. Outfox The Debt Collector's Hounds

    Dealing with a collection agency is scary if you don't know your rights. We help you take back the power.

  9. Everything Investors Need To Know About Earnings

    We go over the concepts behind the excitement over the most important figure in the stock market.

  10. In Small Business, Success Is Spelled With 5 "C"s

    Incorporating these steps will help your business thrive in a competitive market.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  2. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  3. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.

  4. Angelina Jolie Stock Index

    An index made up of a selection of stocks from companies associated with actress Angela Jolie.

  5. Consequential Loss

    The amount of loss incurred as a result of being unable to use business property or equipment.

  6. Lease To Own

    An arrangement where an individual enters into a lease agreement with an owner with the inclusion of a clause that typically gives the individual the right, but not the obligation, to purchase the item leased at a predefined price and time.
Trading Center