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When a person brings an item to a pawnshop to obtain cash without the intent to sell the item, the transaction is considered to be a/an
Collateralized Loan
What are the two types of government loans for college?
Direct Subsidized Loans and Direct Unsubsidized Loans
What is the Credit Card Disclosure Act of 2009?
clear disclosure of credit card terms and fees to consumers.
What are the consequences of defaulting on loans?
Consequences of defaulting on loans include damaged credit scores, legal action, loss of collateral, and potential wage garnishment.
What are some disadvantages of credit cards?
Disadvantages of credit cards include overspending, high-interest rates, and potential negative impact on credit scores.
What is a Credit Card?
credit card is a payment card that enables the holder to borrow funds for purchases.
If a person has to pay $30 a year in interest on each 100 he borrows, the cost is considered: very High,very low, average, or better than average?
Very High
How does the credit card disclosure act of 2009 help consumers?
It helps consumers by ensuring transparency in credit card terms and fees.
What are some common credit problems?
Late payments, high credit utilization, accounts in collections, bankruptcy, errors on credit reports.
What are the 5 C's of credit?
Character, Capacity, Capital, Collateral, Conditions
Declaring Chapter 13 personal bankruptcy will appear on a person's credit report for how long?
7 years
It takes 40% of a person's take-home pay to make the minimum monthly payments on his credit cards and car loan. How would financial counselors describe his indebtedness? good standing, in debt, financially stable?
The person is considered to be over-indebted.
What do you do when you are having trouble paying your credit card payment?
Contact your credit card issuer for assistance and review your budget.
A person has three credit cards and makes regular payments on the two accounts charging the lowest interest rates. No payment is made on the balance due for the third credit card. As a result,
The card company not being paid can raise its APR after giving a 45 day notice
What is a credit report?
A credit report is a detailed record of an individual's credit history.
What are student loans?
Student loans are funds borrowed to pay for education that must be repaid with interest.
Most personal financial advisers believe that a person's monthly credit card bill should NOT exceed?
10% of monthly income
What are the qualifications for credit and loans?
Stable income, good credit score, low debt-to-income ratio, responsible credit history.
Victims of predatory lending practices are typically?
Individuals with a poor credit history
what are some strategies for managing debt
Strategies for managing debt include budgeting, prioritizing high-interest debts, negotiating with creditors, consolidating debts, and seeking professional advice.
When does repayment start for student loans?
Repayment starts six months after graduation or leaving school for federal loans.
When using a credit card you should keep your credit limit below what percentage?
30%
What are interest rates?
Interest rates are the percentage charged on borrowed money or paid on savings.
How do you understand a credit card bill?
A credit card bill details your transactions, balance, payments, and fees for a specific billing cycle.
What is the difference between Secured Credit card and Unsecured Credit Card?
Secured credit cards require a deposit; unsecured credit cards do not.