Credit Flashcards
1
Q
Chapter 7
A
- work with courts to negotiate lower terms with companies
- still have to pay
- credit score lowered (not as significant as chapter 13)
2
Q
Chapter 11
A
- for corporations only
- must be in debt
- companies doesn’t shut down
- work with courts and come up with a plan for them to make money
3
Q
Subprime loan
A
- Given to those who don’t qualify for a loan
- lower interest rate (?? 😁 not for sure)
4
Q
Revolving credit
A
-automatically renewed credit as debt is payed off
5
Q
Cash flow
A
Amount of money being taken in + out
6
Q
Are lenders required to tell you why you are denied credit??
A
YESS
7
Q
How do investors make money from bonds
A
As bonds fluctuates (depends on where the market stands)
8
Q
Chapter 13
A
- declaring bankruptcy
- credit score dropped
- can’t pay off anything
9
Q
5 sources of credit/loans
A
- friends/family
- credit unions
- banks
- life insurance
- pawn broker
10
Q
3 Cs of credit
A
- credit score/character
- capacity (ability to pay back loan)
- capital/collateral
11
Q
Truth in Lending Act
A
-banks calculate credit scores in the same way
12
Q
Equal Credit Opportunity Act
A
- equal opportunities to apply for loans
Race,gender, sexual orientation doesn’t matter
13
Q
Fair Credit Reporting Act
A
- -free credit score
- promotes accuracy,fairness, and privacy for data
14
Q
Consumer Credit Reporting Reform Act
A
- free credit score per year
- limits their info from other people
15
Q
Fair Credit Billing Act
A
Helps consumers w/ billing mistakes
