ANSWER What are four things we should list when writing a check?
QUESTION What are four things we should list when writing a check? Date Payee Numerical amount Written amount Purpose or account number Signature $400
ANSWER The difference between Credit and Debit cards?
QUESTION A Debit Card electronically subtracts money instantly from your savings/checking account to pay for a good/service at time of purchase. A Credit Card extends credit and delays payment ? $500
ANSWER This is what they call a check with insufficient funds in your bank account to cover the bill payment.
ANSWER Electronic computer terminals which offer automated, computerized banking.
QUESTION What is an automated teller machine (ATM)? $200
ANSWER The receipt of money, goods, or services in exchange for a promise to pay at a later date. The most important thing to remember is that you have to pay it back and at an interest rate finance fee.
ANSWER True or False- If you do not pay your credit card bill in full-each month, you will be charged interest on the amount that has not been paid is a periodic charge in exchange for the use of credit.
QUESTION What are: Extremely high interest rates. The worse your credit rating the higher the interest. (Especially for teenagers) Risk Easy to spend over your affordable budget. “Ask yourself can I afford this” Credit companies target less experienced teenage consumers 0% line balance transfers w/ a variable interest rate after the grace period expires Avoid the Minimum Payment Trap Don’t let anyone else use your credit card Don’t keep spending for the free promotional gift $200
QUESTION Credit Bureaus- provides information to businesses regarding the credit history of its customers. Maintains records and assigns each person a credit rating. Be careful a high number of credit inquires can affect your rating. $300
ANSWER Three causes of bad credit preventing a bank to loan money to you?
QUESTION Causes of bad credit preventing a bank to loan money to you: Overextended in bills History of not paying bills or late fees Unemployed No credit history (too clean of credit) Bounced Check- write check with insufficient funds in your bank account to cover the bill payment. Defaulted on loan Bankruptcy Error on Credit Report $400
ANSWER Open up a savings or checking account Apply for 1 credit card, or store card (easier to qualify for) Always pay promptly (not just the minimum payment) Understand the credit terms: grace period, interest rate Be careful not to overuse the card and get yourself into financial trouble BE PATIENT! IT TAKES TIME TO ESTABLISH GOOD CREDIT.
FINAL JEOPARDY ANSWER Name and describe the 3 C’s of credit ?
FINAL JEOPARDY QUESTION What are Character – will you repay the debt? – possess the reliability to pay the debt Capital – What if you don’t repay the debt? – Do you have valuable assets that could be used to pay the debt if you default – what property do you own? Capacity – Can you repay the debt? – Do you work regularly? Provide enough income to support your credit use?