First
Second
Third
Fourth
Fifth
100
Four questions to ask when receiving credit
What is: What’s the interest rate for purchases? How long is the loan for? What’s my minimum monthly payment? What’s the grace period? What extra fees and penalties maybe charged? Which is the best deal for me?
100
P&I schedule stands for this
What is principle and interest
100
Total percentage it costs you yearly to use your credit
What is APR
100
4 pro's of credit
What is Convenience Protection Emergencies Opportunity to build credit Quicker gratification Special offers Bonuses
100
5Cs of credit
What is Collateral Capital Capacity Character Conditions
200
3 negatives of credit
What is Interest Overspending Debt Identify theft
200
Identify economic conditions that could affect your repayment of debt (5C of credit)
What is conditions
200
tracks your success in managing money responsibly … record of your personal financial transactions
What is credit report
200
Lenders want to know if you are trustworthy (5C of credit)
What is character
200
Taking into consideration your work history when deciding if you are creditworthy (5C of credit)
What is capacity
300
Something of value that lenders can repossess if you are unable to repay a loan as promised (5C of credit)
What is collateral
300
Lenders want to see that you have personal items of value (5C of credit)
What is capital
300
This is how often you should check your credit report
What is once a year
300
3 things you need when applying for credit
What is Social security number Driver’s license number Date of birth Address and phone number Name of employer Monthly income amount Total monthly payments on other debts Amount of monthly rent or mortgage payment
300
A period of time allowed in which you can pay off new purchases, if there is no old balance, without being charged interest
What is grace period
400
Payment (rent) you make for the use of another’s money
What is interest
400
Amount you owe with an obligation to pay back
What is debt
400
Amount of financial trust (principal) extended to you by a lender
What is credit
400
a number assigned to a person that indicates to lenders their capacity to repay a loan.
What is credit score
400
One method to determine which credit cards to pay off faster
What has the higher APR
500
Credit score range
What is 300-850
500
A practice whereby a credit card issuer increases a credit card holder’s interest rate if he or she is late making a minimum payment on any debt that is reported to the credit bureaus.
What is universal default
500
Liquidation form of bankruptcy for individuals that wipe out most debts in exchange for giving up most assets
What is chapter 7 bankruptcy
500
Reorganization form of bankruptcy for individuals that allows debtors to keep their property and use their income to pay a portion of their debts over 3-5 years
What is chapter 13 bankruptcy
500
reorganization form of bankruptcy for businesses that allows them to continue operating under court supervision as they repay their restructured debts
What is chapter 11 bankruptcy
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