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Published byElwin Rogers Modified over 9 years ago
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Credit: Buy Now, Pay Later Chapter 5
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Credit 3 C’s of credit Character, Capacity, Capital Credit History-record of your prior credit purchases and payments Default-fail to pay a debt or other obligation Cosigner-someone who agrees to pay your debt if you fail to pay
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Credit Capacity- is your ability to pay credit Credit Application- a form that you will fill out in order to be considered for a loan Capital- is the assets you have at your disposal
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Credit Bureaus Credit Bureau- is an organization that keeps track of credit that is extended to you and the payments you make Credit Report- shows credit cards, car loans, mortgages, or any other type of credit that has been extended to you Credit Score- the number that indicates how well you handle credit
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Credit Cards Credit Card- is a thin plastic card that contains information, person’s name and account number Unsecured loan- you can borrow money or purchase goods or services by just signing your name Collateral- property accepted as security of death
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Credit Cards Annual Percentage Rate (APR)- some cards have you pay an annual set fee Revolving Credit-You must pay part of the charges with interest but you get a grace period on when you have to pay, 20-25 days Cash Advance- is a loan against the available credit on your card
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Credit Cards Available Credit – difference between your card’s credit limit and the amount of credit you have already used.
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Bankruptcy Bankruptcy- legal decision that a person, company, or organization is unable to pay debts owed Chapter 7 Bankruptcy- (straight bankruptcy) eliminates most types of debts. Most turn your property over to be sold to pay your creditors. Chapter 13 Bankruptcy-provides a payment plan, allowing payments to a trustee who will pay your creditors for you
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