Credit

Question 1

Cash advance

Answer 1

Using a debit card like a debit card but with a very high APR-

Question 2

credit rating

Answer 2

A measure of your creditworthiness-

Question 3

debt consolidation.

Answer 3

Typically much higher interest rate. Pay off loans by combining into one payment-

Question 4

collateral

Answer 4

Property pledged to back a loan

Question 5

credit limit

Answer 5

The maximum amount one is allowed to charge in one cycle

Question 6

Bankruptcy

Answer 6

Dismissal of legally allowed debt-

Question 7

Two most common types of bankruptcy and what are they

Answer 7

Two most common are personal (chapter 7), prove
you have no way to pay it back, kills credit score. Chapter 11 or 13 is a pay off plan if you have
the assets to pay of your loan.

Question 8

Credit bearu

Answer 8

A company that collects information on consumer’s credit history and sells it to lenders-

Question 9

What type of credit is credit cards-

Answer 9

What type of credit is credit cards-

Question 10

Secured vs unsecured

Answer 10

Secured has a fixed rate and unsecured and you can pay back at your own pace.

Question 11

Where does most of the money credit card company make come from

Answer 11

Revolvers (people who constantly maintain a

balance and they don’t pay it off every month) . Interest charges, late fees, etc

Question 12

What are the three C’s of credit

Answer 12

• Character (history and whatever)
• Capacity (ability to pay back loans)
• Capital (income)

Question 13

If you do not sign the back of your credit what will you have to do when you use it

Answer 13

Provide identification

Question 14

Approximately how long do you have to pay for items charged on a credit card

Answer 14

Approximately one month

Question 15

What are the three main credit reporting agencies

Answer 15

Experian, Equifax, TranUnion

Question 16

Balance transfer

Answer 16

When a customer pays off one credit card by moving the balance to another

Question 17

deadbeat

Answer 17

A person that pays their credit card balance in full every month

Question 18

What are three typical fees credit card companies charge-

Answer 18

Over limit, balance transfer, annual fee, late fee. No application fees

Question 19

Usury laws

Answer 19

Regulate the maximum interest that can be charged to customers

Question 20

What does FICO stand for-

Answer 20

Fair issac corporation

Question 21

Your credit report is made up of how many factors

Answer 21

5

Question 22

equal credit

opportunity act

Answer 22

Federal law ensuring that all consumers are given an equal chance to obtain credit

Question 23

fair credit reporting act

Answer 23

Assures a consumer’s right to access his or her credit file and dispute incorrect information

Question 24

What 3 common first lines of credit-

Answer 24

Joint account, student loan, store credit cards, secured line of credit

Question 25

co-signer

Answer 25

A person with strong credit history that signs the application along with the borrower

Question 26

Approximately what percentage of a sale goes to the credit card company-

Answer 26

3%

Question 27

How long does filing for bankruptcy on a credit report-

Answer 27

7 to 10 years

Question 28

What are three common reasons people file for bankruptcy

Answer 28

Medical bills, job loss, family breakup

Question 29

grace period

Answer 29

The period of time a cardholder has until the payment is due-