Consumer Loans and Credit Cards

Consumer Loans

are loans given to customers for personal or household purposes OR for consumable items

Mortgages, Refinances, Home Equity Lines of Credit, Credit Cards, Auto Loans, Student Loans, Personal Loan

These are included in consumer loans.

Secured loans

Are loans acquired with COLLATERAL

LOWER interest rate and HIGHER amount

Unsecured loans

Does not include collateral

HIGHER interest rate and SMALLER amount

Mortgages, Home equity line credit, Auto loan

These are included in SECURED LOANS

Credit cards, Personal Loan, personal lines of credit, Student loans, Home improvement Loans

These are loans included in UNSECURED LOANS

Credit card loan

A type of unsecured loan which offers a line of credit accessible through a credit card

Credit card

A short term revolving loan facility

Short term revolving loan facility

A credit agreement that allows a borrower to access funds up to a predetermined limit

Credit

Refers to the ability to borrow money with the understanding that you will repay the borrowed amount in the future

Clients purchases, Balance transfers, Cash advances

These are what result in a credit card loan

Stocks

An equity investment and a type of security that signified ownership in a corporation.

You have a claim on part of the corporation’s assets and earnings

Common stocks

The owner of the stocks is entitled to vote at shareholders meetings

They receive dividends based on the decision of the board of directors

Shareholder

An individual that owns shares or stocks in a corporation

Preferred Stocks

Shareholders have greater claims on the company assets but DO NOT have voting rights

Dividends are fixed and are paid before the common stock holders

Dividends

A payment made by a company to its shareholders

Bond

A fixed income investment where you lend money to an entity and the entity promised to pay you back

Hedging against Equity risk

Generating steady Income

These are the two main functions of bonds in an individual’s portfolio

Mutual fund

An investment where investors pool their resources together invest in diversified assets.

Stock or Equity fund

Bonds

Balanced Fund

Money Market fund

These are the 4 types of Mutual funds in the Philippines

Philippine Stock Exchange

The meaning of PSE

Stocks or Equity Fund

Highest possibility of growth and highest risk

Fund is invested to the stocks in the corporation listed in the PSE

Bonds (Mutual fund)

Conservative growth with low or minimal losses.

Investment is on a fixed-income security

Balanced fund

A mixture of both Equity and Bonds funds.

Return is somewhere between the both of them

Money Market Fund

A mutual fund that is similar to Bond fund but in a shorter term

Ease of purchase

Increase of Purchase power

Building Credit Line

Security

Emergencies

Other benefits

These are the advantages of having a credit card

Blowing your Budget

Paying High Interest Loan

Increased Debt

Others

These are the disadvantages of having a credit card

Interest

Compound Interest

Refers to the sum of the interests and the principal AND the interest of the interests it accumulates over a period of time.

Interest

Defined as the payment made by a person or entity for the use of borrowed money.

Often associated with loan

Apportionment

The act of dividing something among people or the act of giving a share of something to somebody.

Job Assignments

Personal Deployment

Allocation of Budget

Class scheduling

These are the Applications of Apportionment

Hamilton Plan

Jefferson Plan

Huntington Hill

These are the methods of Apportionment

Voting

The process of expressing one’s choice or opinion on a particular manner, such as an election or proposal

Plurality voting

A voting system in which the candidate who polls more votes than any other WINS

A winner takes all system

Majority Voting

A voting system in which the candidate who receives more than half of the votes cast is declared the winner.