Unit 5: Credit Flashcards
The three credit Bureaus are ______, _______, and _______
TransUnion, Experian, and Equifax
A _____ prevents a person from unpaid
An _________ is the person who uses a credit card, but is not pay it
authorized user
Trading in loans for one of different terms is called _______ when your new loan saves you ______ or more
refinancing, 2%
_____ are what home buyers pay after they finish home buying process
______ act is designed to protect customers from unfair credit billing practices
Fair credit billing act
_______ or closed ended credit means you pay _______ amounts of money monthly
installment credit, similar
_______ or open ended credit means you pay _______ per month
revolving credit, as you need
The original value of the loan is the ___
principle
The amount that a lender charges is expressed as a _______ of the principle (interest)
percentage
the period of time of a lifespan of an investment
term
a secured loan has ____ interest rates and ______ amounts loaned. It (does/does not) require collateral loans.
higher, lower, does
a unsecured loan has ____ interest rates and ______ amounts loaned. It (does/does not) require collateral loans.
higher, lower, does not
a ______ rate stays the same
fixed
a _______ rate inc/dec based on federal interest rates.
variable
A ___ takes responsibility for the loan made if it goes unpaid. It could affect your ____ ___.
cosigner, credit score
Unpaid Credit cards have an interest rate of ______ to _______
18-24%
Payday loans have interest rates of ___ to ______
28-40%
Loan sharks have an interest rate of ___ to _____
50-400%
Auto loans are I/R, S/U, V/F
IS, either
credit card loans are I/R, S/U, V/F
RU, either
mortgage loans are I/R, S/U, V/F
IS, either
payday loans are I/R, S/U, V/F
IUF
personal loans are I/R, S/U, V/F (from bank)
IU, either
small business loans are I/R, S/U, V/F
either, S, either
student loans are I/R, S/U, V/F (federal)
IUF
an _______ payment is made up of ____ and ________
amortization, interest, principle
the final loan payment that is much larger than the regular monthly payments is known as a ______ payment.
balloon
the 3 Cs or credit card are ______, ________, ________
capacity (ability to repay), character, (reliable person) and collateral (collateral back up)
A _______ pays off credit card in full every month on time
deadbeat
A ________ is the amount of money available to lend back paychecks later.
line of credit
You ususally repay your credit within the ______
month
The most profitable loans have the _____ terms and have the ______ monthly payments
longest, lowest
