Lesson5- credit cards Flashcards
1
Q
Credit
A
A contractual agreement when the borrower receives the something of value now and agrees to repay the lender at some date in the future.
2
Q
Advantages
A
Don’t have to carry cash
Creates a record of purchases
Cashback and points
3
Q
Disadvantages
A
High interest
Fees
Increased impulse buying
4
Q
Information on the consumer’s credit history
A
Number & types of credit accounts
How long each account has been open
Amounts owed
Amount of available credit used
Whether bills are paid on time
Number of recent credit inquiries
5
Q
What things are banks looking for a borrower
A
Character, capital, capacity
6
Q
Character Q
A
Will you repay the debt?
7
Q
Capital Q
A
What if you don’t pay the debt?
8
Q
Capacity Q
A
Can you repay the debt?
