1. Charcter 2. Capacity 3. Capital 4. Credit History
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What is comsumer credit?
A major force in the American economy and the use of credit in family fincanial planning.
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What are the factors you should consider when choosing a loan or credit card?
Can you afford the item?
\ Do you have the cash you need to borrow the money you need to make the down payment?
\ Can it wait until later?
\ What are the costs of using credit?
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what is open - end credit?
similar to a loan, with a certain amount of money you can barrow for a variety of goods and services.
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Closed - end credit
is only a one time loan. that you will pay back with a certain amount of time. This tpye of credt nvoles having a definte amount of money.
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How can i build my credit?
Pay at least the minimum payment due each month, or more if you can, and make sure you pay on time.
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What can a creditor NOT do?
threaten your credit rating or do anything to damage your credit reputation while you are neogoteating a billing dispute
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How can you manage debt?
By controlling your impulses. use your moneyu responsibly, and use poor judgement.
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advantages of using credit
1. enjoying services and goods, 2. combine purchases (making one monthly payment) 3. able to keep a record of your expenses 4. and also able to shop and travel.
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disadvantages of using credit
1. can easily lose your credit reputation 2. may lose your income and property, which may be taken from you in order to repay your debts
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what are the different types of credit cards?
1. store value (a gift card) 2. co-branding 3. smart cards 4. travel 5. entertainment
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what is net income?
the income that you recieve (take-home pay, allowence,gift cards and intrest)
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What does APR stand for?
Annual Percetnage Rate
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the definition of APR is
the cost of credit on a yearly basis, but expressed as a percentage.