Intro to Consumer Credit
Everything you owe - your home, car, bank accounts, and other personal possessions.
What are Assets?
A person agrees to pay back the loan if the borrower is unable to do so.
What is a Cosigner?
A loan issued by a bank, a credit union, a school, or even a state agency
What is a Private Loan?
How many month in a year have 28 days?
What is 12?
Credit Card APR: 15%---Monthly interest
rate(as a decimal):
What is 0.0125?
Your ability to earn money now and in the future. Creditors want to make sure you have enough income to ti repay the loan.
What is Earning Power?
An Agreement requires borrowers to pay a fee if they wich to pay back an entire loan before the due date.
What is Prepayment Penalty?
Specialized institutions that provide students with the necessary skills to be successful at a particular job.
What are career schools?
What has two hands and a face but can not smile?
What is a clock?
Sammy credit card balance is $1060.50. If he pays
$500, how much will he still owe?
What is $560.50?
It compiles records of all users of credit.
What is a Credit Reporting Agency?
This is often required for a borrower to have cause - it will cover the loan in the event the borrower dies before the loan is paid.
What is Life Insurance?
This is the second highest household debt(mortgage debt is the highest)
What is Student Loan Debt?
It belongs to you but your friends use it more
What is your name?
This is widely accepted by creditors as a reliable way to judge creditworthiness.
What is the FICO score?
The amount of money you borrowed.
What is the Principal?
Accumulated interest that will be added to the loan when the repayment period begins
Whatis Interest Capitalization?
Kate's mother has three children named Snack, Crackle and .....?
Who is Kate?
Requires the borrower to make periodic payments but no interest is charged if the payments are made on time.
What is Deferred Payment Plan?
When you borrow money, you must sign an agreement called.
What's a Promissory note?
This type of loan is available for students with exceptional financial needs.
What is a Federal Perkins Loan?