Definition and Compositions
Provide the financial definition of credit
The ability to borrow money and access to goods and services with the understanding that you will pay later
List one benefit of a credit card
Pay Later, take advantage of goods/services now; more resistant to fraud; card benefits
List behaviors that boost your credit over time.
Daily Payments, and no criminal records
What is a Credit Card
A plastic card that holds pre-approved credit which can be used for the purchase of items now and payment of them later
What is Identity Theft.
Criminal and Illegal act of wrongfully obtaining and uses another person personal data in some way that involves fraud or deception typically for economic gain.
What is a Chapter 7 Bankruptcy
legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts.
how long can you skip on paying off a credit card
If your payment is less than 30 days past due
True/False-it is good to be a co-signer on a credit card
What can a credit card pay for?
Goods and Services
What is the age group most hit by Fraud expenses
60 to 69 year group
What is Collateral
What the banks can take if there is no repayment
List one disadvantage of a credit card
Why does it take longer to build credit than to lose credit?
No trust in the beginning, likely amateur
True/False Paying the minimum payment is the best way to pay for credit card debt
FALSE
How do you avoid becoming a victim of Identity Theft?
Be careful about giving out your personal info and check your financial information. Also regularly ask for a copy of your credit report
List what composes your credit score.
On-time payments, capacity used, Length of Credit History, Type of Credit used, Past Credit Applications
What are the four major credit cards?
Visa, MasterCard, Discover, American Express
If declaring bankruptcy means that you can escape your debt, why is it still extremely undesirable?
you will likely lose property, and the negative bankruptcy information will remain on your credit report for ten years after the filing date.
When a card holder only pays the minimum balance every month what will they gain a lot of?
Increased amount of interest and slow progress in paying off debt on card
What can you do if you become a victim of Identity Theft?
Contact Federal Trade Commission and police
What is Chapter 13 Bankruptcy
It allows you to keep your property in exchange for partially or completely repaying your debt. The bankruptcy court and your attorney will negotiate a three- to five-year repayment plan.
What are the 5 C's of C
character, capacity, capital ,collateral , and credit history
Jeffery is a notorious binge spender. If you are his parents, should you lend him your credit card?
Just no
What should you watch out for when having a credit card
double cycle billing (high limit cards late payment fees)
Where are people most likely to be hit with Fraud