Credit
What is credit?
Credit is the ability of the consumer to acquire goods or services prior to payment with the faith that the payment will be made in the future. In most cases, there is a charge for borrowing, and these come in the form of fees and/or interest.
This is a type of scam we see often used with apps like Zelle, PayPal, Venmo and CashApp
Payment App Scams
What is a budget?
A budget is a plan for how to spend and save money. It helps people track their income and expenses to ensure they don’t spend more than they earn.
What is a 401(k)?
401(k) plans are one of the most commonly used methods to save for retirement. 401(k)s allow employees and their employer to contribute money towards the employee's retirement savings. The employee makes decisions regarding how to invest their money in order to maximize earnings
What are the 2 types of mortgages?
A fixed rate mortgage and an adjustable rate mortgage
What does DTI stand for?
Debt-to-income
Counterfeit Checks
What is the 50-30-20 rule?
50% needs, 30% wants and 20% savings/debt
What is an IRA?
IRAs are tax-advantaged savings accounts specifically designed to help you save for retirement. Unlike other retirement plans, such as 401(k)s, IRAs can be opened without an employer as long as you have-taxable compensation
How much should you put down to avoid paying PMI?
20%
What is something fraudsters often ask for that a bank would never unexpectedly contact you and ask for?
Full social security number
Online banking username and password
What is a need vs. want?
Needs are essential for survival and well-being and wants are desires that enhance comfort or enjoyment, but are not necessary for survival
What is a CD?
Certificates of Deposit, or CDs, are a type of financial account that is designed to hold a fixed amount of money for a fixed amount of time.
In return, the financial institution that issues your CD will pay you interest.
Where can you apply for a mortgage?
Banks, credit unions, savings and loan associations, and mortgage brokers.
What are the 5 factors that affect a credit score?
Payment history, credit utilization, length of credit history, types of credit, and new credit inquiries
This is when scammers send potential victims text messages that appear authentic but contain harmful links the scammer can use to collect data or money.
"smishing" or text scams
What amount of emergency savings should you aim to have?
3 months of living expenses
What are the 2 types of IRA's?
Traditional and Roth
What are the 4 types of mortgage loan options?
Conventional loan, FHA loan, VA Loan and USDA Loans
What are the 5 C's of credit?
Character, Capacity, Capital, Collateral & Conditions
This is when scammers send potential victims emails that appear to come from a valid source and typically contain links used to gather personal information, infect the victim’s device with malicious software (malware) or direct the victim to make payments to the scammer’s account.
"Phishing" or email scams
A credit card secured with collateral meant to help you build your credit
A secured card
How much should you assume you'll need for retirement?
80% of your income
What 4 things make up a mortgage?
Principle, interest, taxes and insurance