The activity, of proposing and defining goals to be achieved, in a period of time for your money
Budgeting
100
Items of value owned by a person, such as a car, which can be used to repay a loan.
Collateral
100
The person who applies for credit and is responsible for repayment
Borrower (Young American Bank Customer)
100
This is what happens when you write a check for more than what you have in your checking account.
Overdraft: Its a $12 fee at Young Americans Bank. It can be over $35 per day at some banking institutions.
200
The sum of all wages, salaries, profits, interest earned, and other forms of earnings, in a given period of time.
Income
200
The ability of an applicant to pay debts based on employment stability and history of living expense payments
Capacity
200
Young Americans Bank's products that require credit or a good banking history.
Loans, credit cards, and checking accounts
200
The age at which you can start establishing an independent credit history.
18 years of age
300
The outflow of money from your possession to pay for items such as goods and services or bills.
Expenses
300
Possessions of value; such as liquid assets (cash), that can be used for loan payment incase the applicant becomes unemployed.
Capital
300
The person who is responsible for payment of a loan if the borrower defaults. They sometimes assist in getting the line of credit, especially at Young Americans Bank.
Co-Signer (i.e. Parent)
300
The amoung of interest paid if a customer pays thier credit card balance off at the end of each month.
0%
400
Deferred consumption (Income which is not spent).
Savings
400
Patterns in an applicant's life or behavior which could change the ability for them to pay back a loan
Conditions
400
How banks keep track of applicants credit history and know if someone could be a risky borrower.
Credit Bureaus. There are three bureaus in the US; Experian, TransUnion, and Equifax.
400
The borrowing of money with the intent to pay it back.
Credit
500
Money owed to other parties from previous lines of credit or loans.
Debt
500
The personality of applicant which can be a "tell tale" of the persons ability to repay loan. Very important to a lending decision.
Character
500
Sets the national interest rate for loans which can affect interest rates for many different kinds of loans.
The Federal Reserve System
500
The percentage strategy when you put a certain amount of money towards your spending, saving, and charitible donations.
70-20-10
500
The average amount of credit cards per American?
There are 3.5 cards per person, totaling 633.5 million credit cards in America. Two for every living American.