Credit Rules
The maximum amount of money a creditor will allow a credit user to borrow.
What is a line of credit?
The legal process in which some or all of a debtors assets are distributed to pay off debts
What is bankruptcy?
A form of security to help guarantee that the creditor will be repaid.
What is collateral?
A crime in which someone wrongfully obtains and uses another person's personal data.
What is identity theft?
What are 3 signs of debt problems?
You barely meeting monthly payments.
The balance on credit cards goes up every month
You use savings for necessities.
You receive 2nd/3rd notices for creditors.
You borrow money to payoff overdue payments.
You have been denied credit because of your usage history
An arrangement to receive cash, goods, or services now and pay for them in the future.
What is credit?
A debtor proposes a plan to use future earnings to pay off debts
What is Chapter 13 Bankruptcy?
An example of closed-end credit
What is an educational loan?
A time period in which no finance charges will be added to your account
What is a grace period?
The periodic charge for using credit
What is interest?
This requires a person to draw up a petition listing his or her assets and liabilities.
What is Chp 7 Bankruptcy?
Doing this to a loan means that you agree to be responsible for loan payments if the borrower fails to make them.
What is to Co-sign?
The greatest disadvantage of using credit cards
What is being tempted to overspend?
The monthly dollar amount you pay to use credit
What is finance charge?
3 things that are not forgiven for Chp 7 Bankruptcy
What are Alimony, Child Support, Certain Taxes, Fines, Education Loans, Debts you fail to disclose?
The tradeoff for choosing small payments.
What is paying more in interest?
The 3 steps should you take if your identity is stolen
What is: Contact the credit bureaus, contact the creditors, file a police report
The 5 C's of credit
What are Character, Capacity, Capital, Collateral, Conditions?
A company that collects information relating to the credit ratings of individuals and makes it available to credit card companies.
What is a credit bureau?
Open a savings or checking account, apply for a department store credit card, take out a small loan, make payments on time
What are ways to build your credit?
2 Factors that determine a person's credit rating
What are Income, Current Debt, Information about your character, How debts have been repaid in the past?