1. Jeopardy P.F. 5: Credit Cards and Bankruptcy

2. Category 1 Category 2 Category 3 Category 4 Category 5 Category 6 100 200 300 400 500

3. 100 Category 1 100 Another term for the borrower of money, goods, etc.... Debtor

4. 200 Category 1 200 The amount of monetary resources a potential buyer has available (e.g. stock)... capital

5. 300 Category 1 300 An asset (e.g. car) or piece of property that a person uses when taking out a loan, promising to give that asset to the lender if the borrower defaults on payments.... Collateral

6. 400 Category 1 400 The lender of money, goods, etc.... Creditor

7. 500 Category 1 500 This rate shows the total cost of credit annually. It includes interest rates and other costs (e.g. service costs)... APR (Annual Percentage Rate)

8. Category 2 100 The price that someone pays for the temporary use of someone else’s funds.... Interest

9. Category 2 200 Fraudulent or discriminatory lending practices designed to exploit vulnerable borrowers (e.g. disguised fees for home mortgages)... Predatory lending

10. Category 2 300 The original sum invested or loaned is known as the…... principal

11. Category 2 400 What are the 3 credit bureaus that compile people’s credit scores?... Trans Union, Equifax, and Experian

12. Category 2 500 What does paying more than the minimum payment on credit cards do?... Lower interest rates; lower overall long- term balance

13. Category 3 100 Approx. what is the range of credit scores that will lead to lower interest rates? 700-850

14. Category 3 200 What is the purpose of a credit score?... Show lenders the risk of default according to the person’s credit history

15. Category 3 300 Name two entities that check your credit scores?... Banks, credit card companies, employers, landlords, etc.

16. Category 3 400 What does it mean for a business to file a Chapter 7 Bankruptcy?... Most severe- they liquidate their assets and go out of business

17. Category 3 500 What does it mean for a business to file a Chapter 11 Bankruptcy?... They are holding out hope of staying in business by proposing a financial plan to creditors

18. Category 4 100 What does it mean for an individual to file a Chapter 13 Bankruptcy?...... The debtor adheres to a payment schedule to repay outstanding debts

19. Category 4 200 Term for selling a company’s assets, paying outstanding debts, and distributing income to shareholders- then go out of business......Liquidation

20. Category 4 300 Approximately how much credit card debt do college students have on average upon graduation?... Over $4,000

21. Category 4 400 What do the 3 credit bureaus do?... Compile people’s credit scores

22. Category 4 500 Interest paid on both the principal and on accrued interest... Compound Interest

23. Category 5 100 Calculated as a percentage of the principal over a certain period; not compounded... Simple Interest

24. Category 5 200 What is it called when you miss payments?... Default

25. Category 5 300 How, over time, can you build a good credit score?... Pay credit cards on time and in full; pay bills and rent on time; don’t spend over 30% of credit limit; savings or checking account; TIME

26. Category 5 400 What can you gain as a result of building a high credit score?... One can receive loans of choice, as well as earn lower interest rates

27. Category 5 500 Credit scores are also known as ______ scores (hint: it’s an acronym)... FICO scores

28. Category 6 100 +/- 1 year, how long (max) can negative credit stay on your record for?... 7 years

29. Category 6 200 Name two companies that have filed Chapter 7 Bankruptcy in recent years?... Lehman Bros Bank, Circuit City, Mervyn’s, Sharper Image, Enron, World Com, etc.

30. Category 6 300 How long do bankruptcies affect a person’s credit score?... 10 years

31. Category 6 400 Name at least 3 companies or individuals who have claimed Chapter 11 bankruptcy... PG&E, U.S. Airways, Donald Trump, Abe Lincoln, Henry Ford, Michael Vick, GM, Chrysler, Walt Disney, etc.

32. Category 6 500 +/- $100 billion, what is the current (2012) total credit card debt in the United States?... $858 billion