AGLS Exam 2 - FLASHCARDS - Consumerism and Credit
What is an ecomomy?
The wealth and resources of a country or region, especially in terms of the population and consumption of goods and services
What is GDP?
The market value of all final goods and services from a nation in a given year
What is the amount of US consumer debt?
15.6 Trillion
What is credit?
Receiving cash, goods, or services with an obligation to pay later
What are examples of secured credit?
Mortgage and auto loan
What are examples of unsecured credit?
Credit card and student loan
What is Open (Revolving) Credit?
A line of credit, extended before you make a purchase, that can be used and then paid back at your convenience so long as the minimum balance is paid each month
Which type of card is issued by banks or corporations? CC company provides systems/records
Bank card
With which card does an association permit logo use for a fee or % of purchases?
Affinity card
What type of card must be used at a specific company (ex. gas card, Macy’s)?
Single purpose card
What type of card must you be 18 or older to use? You put down a deposit which acts as the credit limit
Secured credit card?
18-21; no deposit required, but low credit limit & income requirements
Student credit card
What are different types of credit card fees?
Annual fees, cash advance fees, late fees, balance transfer fees and merchant discounts
What can a FICO score range from?
300 to 850
What are the three different credit bureaus?
Equifax, experian, and TransUnion
What percdnt of the FICO score is amounts owned?
30 percent
What percdnt of the FICO score is payment history?
35 percent
What percdnt of the FICO score is credit max?
10 percent
What percdnt of the FICO score is length of credit history?
15 percent
What percdnt of the FICO score is taking out new debts?
10 percent
What is on time payment %?
Your payments/your payments
What is credit card utilization?
your total credit card/your total credit card
What do credit checks do to your FICO score?
Temporarily reduce your FICO score
What does not reduce your FICO score?
Employer credit checks, checking your own credit score, and credit checks for rentals (apartments)
How does cancelling your credit card affect your FICO score?
It can hurt your FICO score becaue it can reduce your average length of credit history and increase your debt to credit ratio
What type of credit does FICO like to see?
A ________ of debt
What website provides one free credit report from each credit bureau annually?
Annualcreditreport.com
