1. Key Terms Section 10.1 & 10.2  Why should you be careful not to take on more debt than you can easily repay? *Credit *Equity *Creditworthiness *Character *Capacity *Capital *Credit History Question to think about!

2. Section 10.1 & 10.2  Goals  Health  Illness  Off of work Why Borrow?  Home  Education

3. Section 10.1 & 10.2  Total debt payments  excluding housing costs  no more than 20-25%  of your take-home pay. How Much Should I Borrow?

4. CharacterCapacityCapital Are you dependable? Past borrowing Stability of job Pay bills on time Income sufficient to pay loan? What other expenses do you have? Value of what you own -house -investments -savings The Three Cs Section 10.1 & 10.2 Quiz

5. Key Terms Section 10.2 & 10.3  Why is a good credit rating so important? *Credit Bureau *Credit Rating *Secured Loan *Collateral *Installment Loan *Unsecured Loan Question to think about!

6. Section 10.2  Three largest  TransUnion  Equifax  Experian Credit Bureaus  Information comes from  Stores  Banks  Utility companies  Court records  What is on it?  Bounced checks  Missed a payment  Been sued

7. Section 10.2 Credit Report 1.Identifying Information 2.Credit History 3.Collection Agency Info 4.Public Record Info 5.Inquiries

8. Section 10.2 Credit Rating FICO Score 300-850 1.Payment History 2.Current Debt 3.Length of Credit History 4.New Accounts and Inquires 5.Type of Credit Used Who would you loan to?

9. Key Terms Section 10.3  Do you believe that your credit history could help or hinder you if you applied for a loan? In what ways? *Regular Charge Accounts *Revolving Charge Accounts *Grace Period *Credit Limit Question to think about!

10. Section 10.3 RegularRevolvingSources Pay balance in full American Express Diner’s Club Some department stores Carry a balance from one month to another VISA MasterCard Discover Many more Credit Cards Credit Card Costs Annual Fees Interest Limits and Penalties Credit Card Statement & Interest building credit worksheet!

11. Key Terms Section 10.4 & 10.5  Why should all couples discuss money and credit before they get married? *Finance Charge *APR *Acceleration Charge *Balloon Payment *Identity Theft *Debt Consolidation Loan *Bankruptcy Question to think about!

12. Section 10.4 & 10.5  Truth in Lending  Calculate costs the same way  Equality in Lending  Illegal to refuse credit based on race, religion, gender, marital status, age  Fair Credit Reporting Act  Fair Credit Billing Act  Fair Debt Collections Practices Act Credit Rights Credit Responsibilities  Accept Responsibility  Know Your Debt Capacity  Credit and Family  Self-Control with Credit Dave Ramsey and Study Guide