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Consuming Credit
Can I Affording a Loan (1)
Can I Afford a Loan (2)
The 5 C's
Managing My Debt
100
An arrangement to recieve cash, goods, or services now - then pay for them in the future.
What is credit?
100
A one-time loan, for a specific purchase, that you agree to pay back over a specified period of time, in payments of equal amounts.
What is closed-end credit?
100
This is interest computed on the amount of money you initially set out to borrow. In case you're interested - it's very "simple".
What is Simple Interest?
100
One of the 5 C's - this one is where creditors want to know what kind of person they will be lending money to. Are you trustworthy and stable?
What is Character?
100

True or False: When you cosign a loan for a friend, you may be responsible to make loan payments if the other person fails to. 

What is true?

200
The use of credit for personal needs.
What is consumer credit?
200
A type of credit where you borrow money for a variety of reasons to which the creditor gives you a maximum limit of money to borrow. Credit card companies are good examples for this type of credit.
What is open-end credit?
200
The smallest amount of money you can pay and remain a borrower in good standing. Be careful as lenders will often try to encourage you to make such payments as it will take you longer to pay back the loan. You'll pay more interest if you fall into this trap.
What is a Minimum Monthly Payment?
200
One of the 5 C's: Your income and the debts you already have will affect your ability to pay additional debts. Can you handle the debt given your net income?
What is Capacity?
200

True or False: You are responsible to provide proof that disputed information on your credit report is inaccurate.

What is true?

300
A periodic charge in exchange for the use of credit.
What is interest?
300
A time period during which no finance charge will be added to your account.
What is a grace period?
300

The complete record of a person’s borrowing. Income, current debt, character, and how past debts were payed back are all factors that determine this measurement.

What is a Credit Rating?

300
One of the 5 C's: If you lost your source of income, you could repay your loan with this. Can your Net Worth cover the debt?
What is Capital?
300

The business that collects debts for creditors

What is debt collector
400
An entity such as a bank, credit union, or finance company that to which money is owed.
What is a creditor?
400

The total dollar amount you pay to use credit. Usually, if you pay the total amount borrowed prior to the date due you will not have to pay this charge.

What is a interest or finance charge?

400

A last resort legal process in which some or all of the assets of a debtor are distributed among creditors because the debtor is unable to pay his or her debts

What is bankruptcy? Either chapter 7 or 13 - both will stay on your credit history record at the credit bureaus for 10 years!

400
One of the 5 C's: What kinds of property or savings you already have that can SECURE a loan?
What is collateral?
400

How should a cardholder should begin to correct a mistake on a credit card bill? 

Notify the creditor in writing.

500
The maximum amount of money a creditor will make available to you whcih you cannot exceed without further approval from the creditor.
What is a line of credit?
500
Finance charges are calculated using this percentage rate, showing how much credit will cost you on a yearly basis.
What is the Annual Percentage Rate (APR)?
500
The act of someone agreeing to sign a loan on another person's behalf. Think twice on agreeing to do this!
What is Co-Signing?
500
One of the 5 C's: Creditors want to know if you pay your bills on time - have you ever filed for bankruptcy? This largely determines your credit rating!
What is Credit History?