Category A
The ability to borrow money or access goods or services now with the understanding that you will pay it back.
What is credit?
How often you apply for new credit types.
New Credit
Benefits (Positives) of having Good Credit
_________is the strong/positive record of borrowing and repaying money on time. It shows lenders that you are responsible, reliable, and able to manage debt.
Good credit
A card used to make purchases now and pay later with a potential fee. Offers fraud protection.
Credit Card
The initial amount of money borrowed is called....
What is principal?
The number assigned to a person that indicates to lender their ability to pay back loans.
Credit Score
How often you have paid your bills on time.
Payment History
Interest rate is determined before the loan and remains constant as long as payments are on time.
Fixed rate loan.
How much of your available credit you are using.
30% is best.
Credit Utilization
Money earned or charged for borrowing/loaning out. (think back to banking unit) - represented as a %
What is Interest Rate?
If I was a pizza, what kind of pizza would I be?
Hawaiian Pizza?
Meat Lovers (pause?)?
Supreme Pizza
Cheese Only
Hawaiian (cause i'm ethnic and stuff)
A loan backed by collateral (something valuable, like property that they can take if you can’t pay it back). Usually has a lower interest rate.
Secured Loan
interest rate that is flexible or changing and may change depending on other factors
Variable rate loan.
How long you have had credit accounts.
The variety of credit accounts you have:
Credit Mix
__________ is the weak/negative record of borrowing and repaying money. It signals higher risk to lenders.
What is bad credit?
What is the first thing that Michael Jackson says when he turns into an ice cream cone?
~ IM MELTINGGGGGGGGG LIKE HOT CANDLEEEEEEEE WAXXXXX ~
The time period in which you pay back your principal and interest. (How long you are borrowing the money).
What is term?
The maximum amount allowed for a person to borrow.
Credit Line
What celebrity would I make a good couple with?
Actor, Singer, Singer, Singer, Athlete.
Any of the following answers are acceptable:
Zendaya
Kehlani
Ella Mai
Olivia Rodrigo
Caitlyn Clark (i'll lowkey rebound for her)
What are some disadvantages of bad credit?
A loan that does not require collateral (something they can take from you). Usually has a higher interest rate of borrowing.
UNSECURED LOAN.
If Michael Jackson wanted to ask you a question, how would he first say?
DO THEY DO ME THAT WAYYY~~
Detailed record of your borrowing history. It shows how much debt you have, how you’ve managed past payments, and any loans or credit cards in your name.
Credit Report