Post on 14-Dec-2015
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DefinitionsDefinitionsTypes ofTypes ofCreditCredit
4 C’s of 4 C’s of CreditCredit
Your Your RightsRights
Credit Credit ReportReport
PotpourriPotpourri
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F i n a l J e o p a r d y
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The amount of money that is loaned on trust with the expectation it will be
repaid later.
Definitions100
A: What is credit?
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A: What is debt?
The entire amount of money you owe.
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A: What is a credit history?
Record of your behavior relates to borrowing and repaying loans.
Definitions300
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A: What is a credit score?
Rating used by credit reporting companies to help lenders decide
whether to extend credit to a borrower.
Definitions400
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A: What is universal default?
Allows credit card companies to increase your interest rate if you
make just one late payment.
Definitions500
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A: What is single payment credit?
Items are paid for in a single payment after the purchase.
~Utility Companies, Medical Services
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Types of Credit100
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A: What is installment/closed end?
Fixed payments – set period of time to repay.
~car/mortgage loans
Types of Credit200
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A: What is revolving credit/open end?
No stated payoff time, minimum monthly payments, limit to credit,
interest rates.
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Types of Credit300
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A: What is to revolving credit?
Open-End Credit is also known as…..
Types of Credit400
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A: What is installment credit?
Closed-end credit is also known as…..
Types of Credit500
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A: What is capital, character, collateral and capacity?
Name the 4 C’s of credit.
4 C’s of Credit100
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A: What is collateral?
Asset that lenders can take from you if you do not repay the loan as promised.
~home loan, car loan
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4 C’s of Credit 200
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A: What is capacity?
Looks at if you’ve been working regularly in an occupation that is likely to provide
enough income to support your credit use.
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A: What is character?
From your credit history, does it look like you possess the honesty and reliability to
pay creditor debts?
4 C’s of Credit 400
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A: What is Capital?
Do you have any valuable assets such as real estate, savings or investments that could be used to repay credit debts if
income is unavailable?
4 C’s of Credit 500
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A: What is the Truth in Lending Act?
Ensures customers are fully informed about the cost/conditions of
borrowing.
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Your Rights100
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A: What is the Equal Credit Opportunity Act?
Prohibits discrimination in giving credit on the basis of sex, race, color, religion, national origin, marital status, age, or receipt of public
assistance.
Your Rights 200
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A: What is the Fair Credit Billing Act?
Sets up procedures for the quick correction of mistakes that appear on
credit accounts.
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A: What is the Fair Credit Reporting Act?
Protects the privacy and accuracy of information in a credit check.
Your Rights 400
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A: What is the Fair Debt Collections Practices Act?
Prevents abuse by professional debt collectors and applies to anyone employed to collect debts owed.
Your Rights 500
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A: What is your credit report?
Detailed record of your personal credit transactions.
Credit Report100
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A: What is your name, addy, SS#, b-day, employer, position, income, previous addresses, previous employers, spouse (name, SS#, employer, income), rent vs. own, NSF, credit info (date, amt, terms, type of credit, payments late/missed)?
Name 3 things found in your credit file.
Credit Report 200
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A: What is Make sure your credit report is accurate, Pay bills on time, Apply for credit only when needed, Lower balances on accounts, Pay off debt rather than move it around?
Name 3 ways you can get and keep a good credit score.
Credit Report 300
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A: What is 1. Payment History 2. Overall Debt 3. Credit Account History 4. Types of Credit?
Name the 4 ways your credit score is determined.
Credit Report 400
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A: What is Experian,Trans Union, and Equifax?
Name a credit bureau where you can request a copy of your credit report.
Credit Report 500
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A: What is 70%?
According to the rule of thumb, what percentage of your income should be
designated to living expenses.
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A: What is get items now, build credit history, quick source of $ during emergencies, No charge if bill is PIF, and consumer protection ?
Name 2 advantages of using credit cards.
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A: What is Chapter 7?
Straight bankruptcy where many debts are forgiven.
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A: What are banks, credit unions, department stores, auto dealerships, oil companies, life insurance companies and Federal Government?
Name 3 sources where you can obtain credit.
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A: What are Travel and Entertainment Cards?
Used like credit cards, but are not credit cards because the balance is
due in full each month.
Ex: AMEX
Potpourri 500
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A: Advantages: Disadvantages:Buy things now InterestDon’t have to carry cash FeesRecord of purchases Financial Difficulties AriseConvenient Impulse BuyingConsolidates bill
Name 2 advantages and 2 disadvantages of using credit.
Final Jeopardy
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