A legal process that occurs when you can't pay your debts.
100
Who looks at your credit report?
Potential employers, landlords, banks, etc.
100
When is interest charged on a credit card?
When you carry a balance.
100
Define the term debt.
Money you owe.
100
What is capacity?
The ability to repay a loan.
200
What is the difference between chapter 7 bankruptcy and chapter 13 bankruptcy?
Chapter 7 erases debt and you get your stuff taken.
Chapter 13 sets up a payment plan for your creditors.
200
Name one credit bureau.
Mr. Schwent will decide your fate!!
200
Define the term credit limit.
It is the maximum amount you can "buy now" before you "pay later". (The amount you can borrow.)
200
Define OR give an example of open ended credit.
A line of credit that can be used and paid off as needed like a credit card. Also known as revolving credit.
200
Define Character as it relates to credit.
Do you honor your debts and pay your bills on time.
300
What does bankruptcy do to your credit rating?
Destroys it, beats it down and leaves it for dead... on the side of a road... in a ditch.
300
Name another credit Bereau.
Not one that has already been used.
300
What does APR stand for?
Annual Percentage Rate
300
What is closed ended credit?
A fixed loan that is paid back in set increments like a mortgage.
300
Collateral:
What you have of value that can be taken if you don't pay up. (Your assets.)
400
Who is Mr. Schwent's favorite Marvel Superhero.
Deadpool or Captain America.
400
Name another credit bureau.
Can not be one already used.
400
What is a minimum payment?
The smallest amount you are allowed to pay on your card that month.
400
List two advantages of credit.
Good for emergencies, paying for things on line, more secure than cash, etc.
400
What is a credit report?
A comprehensive report containing all information about your debt and credit history.
500
Who is your favorite teacher?
You better have a good reason if you don't guess Mr. Schwent.
500
How often can you get a free credit report?
Once a year.
500
What does the term "new balance" mean on your credit card statement?
The new total amount that you owe.
500
List two disadvantages of credit.
Can overspend, can lose track of spending, your identity can be stolen, can be hard to build a good credit rating when you first start out on your own, etc.
500
What is a credit score?
A numeric score ranging from 300 to 850. It is a "snapshot" of your credit worthiness.