Poverty
List three causes of poverty
1. Lack of education
2. Family
3. Spending too much money
Give me two examples of new technological advancements that were created during the 1920s?
1. T.V.
2. Radio
3. Cars
4. Fridge
What is the highest and lowest credit score possible on the FICO scoring model?
Highest- 850
Lowest- 300
What is the difference between installment credit and revolving credit?
Installment credit is paid back in increments, but it cannot be reused. It is always a loan.
Revolving credit can be reused once it is paid back. It is a credit card. (HELOC is an exception)
What has the biggest impact on your credit score? What has the lowest impact on your credit score?
Biggest- Payment history
Smallest- Credit mix
What is the biggest cause of overspending in the U.S.?
Consumerism
What caused the Great Depression?
The stock market crash
Name three ways you can start building your credit (not increasing)
1. Get a student loan
2. Get a credit card (secured)
3. Become an authorized user on your parents credit card
4. Open utilities in your own name??
What does APR stand for?
Annual Percentage Rate
Side Note Reminder: Interest + fees
Why would a person choose to get a secured credit card instead of a regular credit card?
You choose your limit, provide a security deposit, and it is used to build credit scores so you can get a secured card without a credit score
What is the difference between the standard of living and personal well-being.
Standard of living: The quality of your life based on your income
Personal Well-Being: Your mental and physical health
Who assigned credit scores during the 1920s?
Stores assigned points based on income, race, employment status, etc..
What percent of your credit limit should you use?
30%
What is the difference between the balance on your credit card and the available credit?
Balance- How much you have spent (need to pay back)
Available Credit- Money you can still spend
What are the three credit reporting agencies?
1. Equifax
2. Experian
3. Transunion
What does each percent stand for in the 50/30/20 rule?
50%- Needs
30%- Wants
20%- Saving
In the 1920s, where did people get credit from? In the 1930s, where did people get credit from?
1920s- Store
1930s- Bank
Sam paid off his car loan. What happened to his credit card? Why?
It drops because he is closing a line of credit
1. Give me an example of a hard inquiry. What does it do to your credit score?
2. Give me an example of a soft inquiry? What does it do to your credit score?
1. Applying for a loan (lowers)
2. Looking at your own credit (nothing)
Do you have to pay a medical bill that is sold to a collections agency? Why?
No because the hospital violated Hipaa
What is the average propensity to consume?
The percentage of income that is spent and not saved
John has $200,000 in Bank ABC. He also has $400,000 in Bank XYZ. In total, how much is covered under FDIC insurance?
$450,000
$200,000+$250,000
What are at least three credit card details that are important to review before applying for a card?
Regular purchase APR
Bonuses/Rewards
Foreign Transaction Fee
Penalty APR
Late Fee
Annual Fee
What does HELOC stand for? What does it mean?
Home equity line of credit
It is a revolving credit that you can take out against the equity of your house
1. How long does Chapter 7 bankruptcy stay on your credit report?
2. How long does a hard inquiry stay on your credit report?
3. How long does a missed payment stay on your credit report?
1. 10 years
2. 2 years
3. 7 years