Category A
What is credit?
What is the ability to borrow money or access goods and services with the understanding that you'll pay later.
When should you first start a loan?
If needed, college
Name one example of single payment credit
Utilities
some retail businesses
What will happen if you dont pay your debt?
Assets will be seized, house, car, stocks, etc...
What is installment credit
Merchandise and services are paid for in two or more regularly scheduled payments of a set amount. Interest is included
What is single payment credit?
Items and services are paid for in a single payment, within a given time period, after the purchase. Interest is usually not charged.
What is revolving credit?
Multiple items can be bought using this plan, as long as it doesn't go past the limit. repayment is regularly made in time periods
Where is installment credit used?
Commercial banks, Consumer finance companies, Savings and loans, Credit unions (must say at least two to get to get the points)
name two advantages of using credit?
Able to buy needed items now, Don’t have to carry cash, Creates a record of purchases, More convenient than writing checks, Consolidates bills into one payment
What are the 3 CCC's of establishing credit?
Character, capital, capacity
Whats two things bank look at for credit history?
■ Have you used credit before?
■ Do you pay your bills on time?
■ Do you have a good credit report?
What is considered a good credit score?
700+
Name three rights you have as a consumer?
truth in lending act (1968), fair credit reporting act (1970), equal opportunity act (1974) , air credit billing act (1974), fair debt collection practices act (1977)
Name three ways to establish credit history?
Establish a steady work record, Pay all bills promptly, Open a checking account and don’t bounce checks, Open a savings account and make regular deposits, Apply for a local store credit card and make regular monthly payments, Apply for a small loan using your savings account as collateral, Get a co-signer on a loan and pay back the loan as agreed.
Who is the best person to ever roam this earth?
Lailah