credit Flashcards
supplying of money, goods, or services in the present with the promise of future payment
credit
everyday purchases (personal)
consumer credit
money that businesses borrow from a bank
commercial credit
types of credit cards
retail
bank
visa/ mastercard
travel/ entertainment
temporarily expands your income
credit
has to be determined by a court of law
some debts will be forgiven
bankruptcy
misinterpreting the truth
fraud
to take back money
vehicles are #1 thing
repossess
dollar amount you’re allowed to spend up to
line of credit
IRS or bank takes money out of your paycheck bc you haven’t paid it on your own
garnishment
principle amount (amount you borrowed)
finance charge
30 days where you won’t have interest
grace period
make x amount of payment
installment credit
range 300-850 (higher the better)
good> 660 or above
below 620> bad credit
credit score
factors of credit score
payment history
how much you currently owe
credit history
applying for too much credit
higher score»_space;>
lower interest rate
cash put down for a purchase
houses 10-20%
down payment
4 Cs of credit
capacity
capital
character
collateral
protects you from financial loss
insurance
contract you sign w insurance agents and companies
policy
payment to your insurance company
premium
has to have value to you
insurance interest
process where you receive financial compensation for your loss
idemdification
paperwork you start w your insurance company to start your idemdification process
filing a claim
trustworthy
liability
insurance types
car health house life flood
helps protect you from big medical bills
health insurance
liability protection, structure of home, contents of home
home insurance
term (buy on yearly basis) whole life (can insure more money)
life insurance
protects contents of apartment you live in
renters insurance
what must you have to drive legally in PA
liability
when you are at fault, car insurance pays for the other persons damages
liability medical coverage collision coverage comprehensive coverage uninsured motorist coverage underinsured
pays for your own body
medical coverage
protects your car when you’re at fault
optional
has a deductible
collision coverage
protects car from acts of nature and vandalism
has deductible
comprehensive coverage
someone hits you who doesn’t have insurance
uninsured motorist coverage
protects you when someone hits you who doesn’t have enough insurance
underinsured
contract between you and the landlord
lease
renter of home
tenant
owner of home
landlord
amount paid before you ever move in
given back to you when you move out as long as nothing is damaged
security deposit
are you allowed to let someone else fill in lease if you need to move out suddenly
sublet
get kicked out for not paying
evict
look for anything that could potentially be an issue
efficiency
advantages of apartment
cheaper than home can call landlord to fix items broken in home landlord plows/ mows less permanent than house no property tax
disadvantages of apartment
more money per month depending on city
not building equity
tied to a contract
no pets
neighbors close
disadvantages of apartment
will not change until it’s paid off
fixed rate
interest rate could change on a monthly basis
flexible
what 3 items should you have to get monthly dollar amount
total price being borrowed from bank
interest rate
how many years in order to pay it back
restructuring your loan
refinance
how much your house is worth
appraisal
plays big role on appraisal of house
location
ownership papers of a house
deed
pay taxes monthly rather than yearly
escrow
bank wants money and house back
foreclosure
advantages of house
build equity
can change appearance
pets
disadvantages of house
expensive
property taxes
landscaping
less mobile
3-5 years
car loan
value goes down in value over time
deprecation
