CHAPTER 4: CREDIT & DEBT
Definition: A statistical number (300-850) used to determine a customer's credit worthiness.
What is a credit score?
Definition: Spent money on nonessential goods and services.
What is discretionary spending?
Definition: How quickly you can access the money in an account or the value of an asset without a penalty or fee.
Equation: Principal x Rate x Time=?
What is Simple Interest?
Definition: Money owed to another person or company.
What is debt?
Definition: The process of communicating the value of a product or service to customers.
What is marketing?
Fill in the Blank: Banks often promote ______ __ as a financial safeguard, but it's actually an unhealthy money lifeline.
What is Overdraft Protection?
Definition: The act of fraudulently gaining and using the personal information of someone else, usually for financial gain.
What is identity theft?
Definition: Credit that automatically renews whenever a payment is made to reduce the debt.
What is revolving credit?
Definition: A form of online advertising that keeps a company's product in front of its target audience by following them all over the web.
What is retargeting?
Definition: Offers a higher interest rate based on your balance and is great for emergency fund.
What is a money market account?
Examples: Checking Account, Money Market Account, Basic Savings Account, Certificate of Deposit, etc.
What is a bank service?
Example: Annual Fee, Balance Transfer Fee, Cash Advance Fee, Finance Charge Fee, Late Payment Fee, Over Limit Fee, Returned Payment Fee.
What are credit card fees?
Examples: Item Specials, Multi-Sensory Marketing, Customer Rewards.
What are sneaky retail tricks?
Definition: Non-profit financial institutions that are owned and operated by their members, offer deposit accounts & lending services to a retail bank, but at a lower price.
What are credit unions?
Examples: Payment History (35%), Credit Utilization (30%), Length of Credit History (15%), Types of Credit (10%), New Credit (10%).
What are the Five Key Factor of Keeping your Credit Score?
Fill in the Blank: You are a victim of ___ if someone used your card without permission.
What is Card Fraud?
Steps: 1) Your brain receives marketing signals, 2) Your amygdala activates, 3) You feel an adrenaline, 4) You decide to purchase, 5) You feel a dopamine boost, 6) Your brain returns to normal, 7) You experience buyer's remorse.
What is 'The Impulse Purchase Cycle?'
Definition: Institutions that insure money you deposit (up to $250,000).
What is NCUA and FDIC?
Examples: Investment banks, Investment Service Institution, Financial Advisement Companies, Wealth Management Firms, Insurance brokers or agents, Credit card companies.
What are financial services?