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2 pt 3 pt 4 pt 5pt 1 pt 2 pt 3 pt 4 pt 5 pt 1 pt 2pt 3 pt 4pt 5 pt 1pt 2pt 3 pt 4 pt 5 pt 1 pt 2 pt 3 pt 4pt 5 pt 1pt Short Answers VocabCredit Terms True or False? T OR F?
A loan that is backed by collateral
What is a secured loan?
The cost of credit expressed as a yearly percentage.
What is APR— annual percentage rate?
A financial institution that is owned and operated by members to provide savings accounts and low interest loans
What is a credit union?
The amount that you originally borrow.
What is principal?
Cost of credit expressed in terms of dollars and cents
What is finance charge?
Rating of the risk involved in lending to a person or business.
What is credit rating?
What is a depository institution owned and operated by its members to provide savings accounts and low-interest loans only to their members
What is a credit union?
A bank whose main function is to accept deposits, lend money, and transfer funds among banks, individuals, and businesses.
What is a commercial bank?
Installment debt owed on houses, buildings, or land
What is a mortgage?
An example of this type of financial institution is Payday Advance Company
What is a Consumer Finance Company?
Something of value that a borrower lets the lender claim if a loan is not repaid.
What is collateral?
One of the “Cs” that deals with financial reputation.
What is “Character?”
This type of loan is considered ‘safer’ because it is backed by collateral.
What is a Secured Loan?
Legally declaring that a person is unable to pay off debts owed with available income.
What is personal bankruptcy?
The Act that prohibits ‘providers’ from denying credit because of race, religion, national origin, gender, marital status, or age.
What is the Equal Credit Opportunity Act?
Bankruptcy proceedings could remain on your credit record for as long as 10 years.
A state usury law restricts the number of days a consumer has to pay his/her credit card bill.
FALSE A state usury law restricts the amount of interest that can be charged for credit.
One advantage of using credit is the ability for you to spread your payments over a period of time.
If you have been arrested for forgery, the “C” of creditworthiness affected is “Capacity.”
FALSE The “C” of Creditworthiness is that is lacking with an arrest record is “Character”
Having clear title to your car best represents the Creditworthiness Capacity to pay.
FALSE-- Owning assets (car, house, etc.) is an example of “Collateral” Creditworthiness
If your APR is 18%, it means that you pay $18 per year for every $1,000 you owe.
FALSE—18% APR means you will pay $18 a year on every $100 you owe.
An example of a durable good is a sack of groceries.
FALSE Durable goods are manufactured items that have a life span longer than 3 years.
If you declare personal bankruptcy, you would still be responsible for paying your taxes.
The minimum number of days your credit card company has to deliver your bill before the payment date is 30 days
FALSE The number of days is 21 days
A credit card company cannot generally increase your credit card rates for at least 18 months.
FALSE Generally the introductory rate cannot be raised for at least 6 months.
Carl Johnson Financial Literacy Jenks High School.
GET A TEXTBOOK GET A NOTES SHEET START FILLING IN THE VOCABULARY (TOP SECTION) Tuesday.
Chapter 7: Planned Borrowing. Objectives Discuss the elements of the planned use of credit. Establish your own debt limit. Understand the language of.
What you need to Know! What does this mean? What about interest?
Understanding Loans and Borrowing Money. Development of Credit In the Past Credit Today.
CREDIT. ADVANTAGES OF CREDIT advantages: o Able to buy needed items now o Don’t have to carry cash o Creates a record of purchases o More convenient than.
Credit and Its Use.
Unit 4 - Good Debt, Bad Debt: Using Credit Wisely PG 73.
Consumer Banking Dollars and Sense. Interest Rates – Rules of Commercial Banks – Interest rates charged for loans higher than Savings Banks and interest.
Back to Table of Contents pp Chapter 26 How to Get and Keep Credit.
Going Into Debt Americans and Credit.
Going into Debt. Americans and Credit What is credit? What is credit? Receiving funds directly or indirectly, to buy goods and services w/ promise to.
Credit Card Review. Some credit card companies charge ________ fees for the use of their card.
Name ___________ Date____________ Credit and Debt-Personal Finance pg
Chapter 4: Going into Debt
Chapter 4 “going into debt”
Consumer Credit Chapter 11.
Labor Unions and Credit. Labor Unions Association of workers organized to improve wages and working conditions for its members. A group has more power.
Going Into Debt Americans and Credit. What is Credit? Credit: is the receiving of funds either directly or indirectly to buy goods and services now with.
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