Financial Literacy ACCUMULATIVE

(Loans and Credit) Unsecured loans

Loans that do not have collateral, like credit cards and personal loans. Typically have HIGHER interest rates.

(Loans and Credit) Secured loans

Loans that have collateral, like mortgage and auto loans. Typically have LOWER interest rates.

(Loans and Credit) Secured vs Unsecured credit cards

Unsecured credit cards are traditional

Secured credit cards are when you make a deposit to the bank and that is the credit limit for each month. (Typically for people who want to rebuilt their credit score)

(Loans and Credit) Revolving Credit VS Installment credit

Revolving credit is when there is a credit limit but can be repeatedly used if played back each month (credit card)

Installment credit is when there is a set amount that you make regular set payments for (student loan, personal loan, etc.)

(Loans and Credit) Qualifications needed to get a loan

• Credit score and history

• Income and job history

• Debt to income ratio

• Loans with collateral (secured loans) are easier to qualify for