5 C's of Credit
Which C of credit refers to your credit report and credit score to determine your creditworthiness
credit history
When comparing credit cards, this is the most important factor of a credit card to consider when deciding your credit card
Answers vary depending on views
What is the quickest way to raise or improve your credit score
pay on time!!!
Identify an investment that would be considered Level One on the Investment Risk Pyramid
Savings/checking account, CDs, money market accounts, life insurance, annuity, savings bonds
You can withdraw your retirement money as soon as 59 and 1/2 years with this type of account
Roth IRA
Interest rate that can change at any time
Variable rate
Lenders determine assets that can be used for payment if the borrower does not make payments
collateral
Another name for open-end credit
revolving credit
this type of bankruptcy allows you to keep all of your assets, though you must have a "payment plan" to pay back some of the debt
Chapter 13
This type of investment is essentially a loan that you can give to either the government or a business
bond
social security
Ability to receive services, such as water, and pay for it later
service credit
the C of credit which refers to your assets and liabilities and if you have a positive or negative net worth
capital
What percent should credit users keep their outstanding debt below to have "good" credit use
Under 40%; nowdays people are saying under 30% though
you must sell most of your assets in this type of bankruptcy
Chapter 7
What term from investing means to put your money into multiple types of investment to lessen the risk of loss of money
diversification
What is the maximum dollar amount that you can contribute to a traditional or Roth IRA
$6,000
The legal document that specifies if a person wishes to be kept alive during a severe health situation
living will
Lenders determine if you have enough cash flow each month to pay your debt - more income than expenses each month
capacity
Section of the credit report that lists the soft checks and hard checks
credit inquiries
what are 3 of the 5 factors that are used to determine your credit score
payment history, outstanding debt, types of credit, credit history (length of use), pursuit of new credit
How many years would it take for $10,000 to double in value, if you earned 8% rate of return each year
9 years; 72/8%=9 years
This type of retirement account is created for people that are self-employed.
Keogh
Ability to postpone the payment of taxes
tax deferred
The 5 C's of Credit
Character, capacity, capital, collateral, credit history
List 2 benefits to using a credit card
used responsibly it will raise your credit score; safer to use traveling/making online purchases; earn cashback/other rewards
What are the 3 credit reporting agencies that create your credit report
Equifax, Experian, TransUnion
Identify two investments that would be considered Level Two on the Investment Risk Pyramid
corporate bond, gov. bond, treasury securities, preferred stock
To keep your estate plan private and avoid probate, you would create a ____.
trust
Credit used to purchase a high-priced item, such as a home, with equal payments over a set period of time
closed-end credit or installment loan