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Presentation transcript:

Scams APR & Finance Charges Three Cs Credit ReportLoans

The Answer is: Obtaining the use of money that you do not have, but promise to pay back.

The Question is: What is credit?

The Answer is: Two important consumer credit protection laws.

The Question is: What is the Truth in Lending Act and the Fair Credit Reporting Act?

The Answer is: Additional money that has to be paid back that is added to an initial loan.

The Question is: What is interest?

The Answer is: Goods (tangible or intangible) that investors hope will retain value or increase in value.

The Question is: What are assets?

The Answer is: If Travis borrows $2,000 at a 10% annual interest rate, how much interest he will pay back in 5 years.

The Question is: What is $1,221.02?

The Answer is: The amount of money obtained through a loan.

The Question is: What is principal?

The Answer is: A record of an individuals personal credit history.

The Question is: What is a credit report?

The Answer is: Your ability to qualify for a loan depends on these three things called the Three Cs.

The Question is: What are Character, Capacity, and Collateral?

The Answer is: If Patricia borrows $1,000 at 6% annual interest, how much interest she will pay back in 3 years.

The Question is: What is $ ?

The Answer is: The three largest credit bureaus.

The Question is: What are Equifax, Experian, and TransUnion?

The Answer is: The first thing you should do when deciding to take out a loan.

The Question is: What is check your credit report?

The Answer is: What accumulates over time when you have a loan.

The Question is: What is interest?

The Answer is: Name two types of lending institutions in your community.

The Question is: What are banks, savings and loans, credit unions, and finance companies?

The Answer is: Two federal laws that regulate consumer credit.

The Question is: What is the Fair Credit Reporting Act and the Equal Credit Opportunity Act?

The Answer is: Two places where consumers can look for information about interest rates on auto loans.

The Question is: What is online and at local banks and credit unions?

The Answer is: When scam artists get your name, SS number, credit card number, or other personal information that can be used to open new credit card accounts.

The Question is: What is identity theft?

The Answer is: A high-cost loan that allows a person to get cash until their next payday (usually 2 weeks) with no credit background check.

The Question is: What is a payday loan?

The Answer is: Type of fraud where the first participants receive payments for recruiting additional members.

The Question is: What is a pyramid scheme?

The Answer is: This type of scam occurs when you are contacted by a company offering a loan if you first pay an upfront fee. Then, they dont give you a loan.

The Question is: What is an advance fee loan scam?

The Answer is: This type of scam occurs when a company offers to provide scholarships, but first you have to pay an upfront fee.

The Question is: What is a college financial aid scam?

The Answer is: What APR stands for.

The Question is: What is annual percentage rate?

The Answer is: What are the three methods of calculating credit card interest?

The Question is: What are average daily balance, adjusted balance, previous balance?

The Answer is: The APR charged if Sheila secures a $5,000 loan with 5% add-on rate for one year.

The Question is: What is 9.2%?

The Answer is: The APR charged if John secures a $6,000 loan with a 7% add-on rate for one year.

The Question is: What is 13.6%?

The Answer is: Finance charge if David borrows $2,000 at a 10% add-on rate for 3 years.

The Question is: What is $600?