Personal Finance

Credit Review

JEOPARDY

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DefinitionsDefinitionsTypes ofTypes ofCreditCredit

4 C’s of 4 C’s of CreditCredit

Your Your RightsRights

Credit Credit ReportReport

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F i n a l J e o p a r d y

Question

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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Question

A: What is debt?

The entire amount of money you owe.

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Question

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A: What is a credit history?

Record of your behavior relates to borrowing and repaying loans.

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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

Question

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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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A: What is installment/closed end?

Fixed payments – set period of time to repay.

~car/mortgage loans

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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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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.

4 C’s of Credit 300

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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.

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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

Question

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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