Test over Credit tomorrow Bingo review Test over Credit tomorrow You have 3 Notes sheets that you could study from and any other worksheets you have. Also, my power points are on my website.
Credit Review Spring 2014
Late Payment Fee Fee charged when the payment made is not made by the due date
Truth in Lending Act This states: the cardholder is only liable up to $50 if the card is stolen; if the number is stolen (but not the card) the cardholder has $0 liability and states the cardholder must submit a letter within 60 days of fraud.
Finance Charge Charges to a credit card when you do not pay the full amount due on your bill.
Credit Worthiness Checking someone’s credit history helps a lender determine their ____________.
Minimum Payment Smallest amount that can be paid on a credit payment
Credit Limit The maximum amount of charges allowed to an account.
Installment Credit Borrowing a set amount with equal monthly payments
Capital Savings, investments, IRA, 401 K plan, are examples of things which are liquid and can be accessed to pay off debt.
Interest The charge for borrowing money
Credit Receipt of money to buy good or services in the present with the promise to pay for them in the future.
Annual Fee Fee charge once a year for credit card ownership
Credit Reporting Agency The best place for a consumer to acquire a credit report and this can be done 1 time per year per agency.
Revolving Credit Pre-approved credit up to a certain limit that you can use at any time.
Secured Loan This backed up by collateral and the collateral can be the item you are purchasing
Credit Report A record of a consumer’s credit history
Collateral Having something of value that can be sold or used to help pay off a debt i.e. house, art, jewelry
Credit Score A number that summarizes an individuals’ credit history
Cosigner A person besides the borrower who signs a credit agreement and is legally obligated to repay the loan if the borrow does not make payments.
Capacity to Pay Stable job history and having the ability to pay for the item you purchases
Condition Adverse changes to the industry you work in, adverse property changes, pending lawsuits are all example of ???
Annual Percentage Rate Cost of credit expressed as a yearly percentage
Bankruptcy Not having enough income to pay for all of your expenses and being in debt to the point of never being able to pay. Remains on your credit for 10 years
Due Date Date the payment is due
Character Having good or bad payment history
Additional things to look at… Advantages and Disadvantages of Credit Review vocabulary Credit Card Safety Tips Debit and Credit Cards (Differences & Similarities) Credit Scores (effect to you – and how you affect it) Identify the 5 C’s of credit Comparing credit card offers