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20 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Advantages of using credit (4) |
Make large purchases NOW convenient Assists with budgeting Safer than cash if lost |
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Disadvantages of using credit |
Overspending Increase in price of purchases |
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Creditor |
Whoever you owe money to |
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5 C's of credit |
Character Capacity Capital Collateral Conditions |
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FICO score |
Numerical rating of you as a potential borrower |
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Fair credit reporting act |
Bank must tell you WHY if you are denied credit |
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Credit card/bank loan interest rates |
Betters customers will get better rates Must be stated as APR |
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Lower APR= |
Lower monthly payment |
____ monthly pay |
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Truth in lending act |
Protects consumers Banks MUST show what happens to consumers acct. |
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Ch 13 bankruptcy |
Financial timeout Payment plan to eliminate dept Temporary |
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Ch 7 bamkruptcy |
Debts washed clean Liquidate non essential assets 7-10years |
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What is meant by the term predatory lending(3) |
Worse terms/ higher costs to certain consumers Primary purpose of benefiting the lender No regard for the costs to the borrower |
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Characteristics of Predatory lending(4) |
Unusually high interest rates Interest rates that change Excessive fee Pre payment penalties |
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Who is typically targeted by predatory lenders(5) |
People desperate for help Low income Minoritis Elderly Anyone uneducated about finances |
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Subprime mortgage(2) |
Trick people into buying stuff they cannot afford Not typical customer |
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Payday loan |
Short term loans |
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Title loan |
Promise your car in return for a small loan |
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Debt consolidation (3) |
Negotiate prices lower loan $ Charge interest Not paid in full |
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Debt snowball(3) |
Send minimums Attack lowest card first Paid in full |
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APR & how often is it payed |
The amount of interest on your total loan amount Payed annually |
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