All About Credit
An open-ended loan that allows you to borrow money up to a certain limit and carry over an unpaid balance from month to month.
What is Credit Card?
Contract between you and the insurance company that states it will pay whomever you want a certain amount if you are no longer here?
What is Life Insurance Policy?
Interest that is earned on interest, i.e., when you earn interest on both the money you've saved and on the interest earned on the money.
A financial institution and business that accepts deposits, makes loans, and handles other financial transactions.
What is a Bank?
A plan that outlines what money you expect to earn or receive (your income) and how you will save it or spend it (your expenses) for a given period of time; also called a spending plan.
What is a Budget?
A number created from a scoring model that uses information from your credit history.
What is Credit Score?
Person who will receive the death benefits
What is Beneficiary?
What is Financial Risk?
An item with economic value, such as stock or real estate.
What is an Asset?
Something necessary to live and function.
What is a Need?
Money that needs to be repaid by the borrower, generally with interest.
What is a Loan?
Two factors that can affect the cost of life insurance.
What are Age, Gender, Health, Smoking, Lifestyle, Family Medical History, and Driving Record?
The spreading of investments both among and within different asset classes.
Diversification
A card used to make purchases at businesses (like grocery stores and gas stations) with money in your checking account.
What is a Debit Card?
Something an individual desires but would be able to live without.
What is a Want?
The amount of credit a person has compared with the amount they've used.
What is Credit Utilization?
A policy that provides insurance for a set period of time. Premiums are lower than other types of insurance, and can be for 10, 20, or 30 years.
What is Term Life Insurance?
Independent agency of US government that protects bank depositors and maintains stability in the financial system.
What is the FDIC?
An illegal act that occurs when people try to trick you out of your personal information and your money.
What is Fraud?
Money set aside in an easily accessible account to cover unexpected expenses.
What is Emergency Savings or Emergency Fund?
An individual who signs a loan, credit account, or promissory note of another person as support for the credit of the primary signer and who becomes responsible for the debt obligation.
What is a Cosigner?
Insurance coverage for the individual's lifetime as long as the premium is paid. Includes a cash value component.
What is Whole Life Insurance?
An account that offers the benefits of both a savings and checking account, and where you can earn a higher interest rate. The account has limited check- writing ability.
What is Money Market Account?
A cooperative financial institution that is chartered by the National Credit Union Administration (a federal independent agency) or a state government and is owned by its individual members.
What is a Credit Union?
Costs that largely remain constant.
What are Fixed Expenses?