WISE EXAM REVIEW II Flashcards
Bankruptcy: 13
the wage earner plan; you have 5 years to pay all of your debt
Bankruptcy: 7
all owed debt is eliminated
Collateral
any asset that can be repossessed by a loaner
Consolidation Loan
when multiple loans are combined into one large loan
Consumer Debt
the concept of an individual accumulating debt
Co-sign Loan
When an two individuals sign on a single loan; typically when one has low credit
Credit History
goes into you FICO score
Credit Reporting Agencies
transunion, Experian, Equifax
How many times a year can you get a free credit report?
once a year
Default
when a company sues you for not paying a loan
Finance Charges
interest rates
Foreclosure
a house loan that goes into default; the house is repossessed
Garnishment
the deduction of money from a paycheck by an employer; typically for child support
Grace Period
the time between the due date of a bill and it’s late fee; typically 5 days
Home Equity Loan
a second mortgage on a house; can cause sever debt
Identity Theft
when someone steals your personal information and hack your property
Installment Loan
when you pay the same amount on a loan every month
Promotional Rate
a lower interest rate that is offered by a bank; if your able to pay in in time the lower rate will become the regular rate
Revolving Credit
the amount on your credit card when compared to your credit limit
Secured Credit Card
low credit limits; when you pay the limit before spending the money
Secured Loan
a loan with collateral
Unsecured Loan
a loan without collateral
Truth in Lending Act
a loan company has to disclose all parts of the loan; the interest rate, term, due date of payments
Usury Laws
protects consumers from interest rates that are incredibly high
Variable Interest Rate
an interest rate that changes
Annual Deductible
the total amount that a consumer spends on medical care that their insurance company needs to pay
Beneficiary
an individual that will get all of the proceeds from another individuals life insurance policy
Cash Value
the build up of whole/ universal
insurance
Which insurance does not build cash value?
term life insurance
Co-pay
the amount of money that a consumer pays with their insurance company
Death Benefit
the amount that an individual gets from a recently deceased person’s life insuranceq
Disability Insurance
the amount of money a consumer receives if they are unable to return to work
Homeowner’s Insurace
insurance for your home
Collision Insurance, Comprehensive Insurance, Liability Inurance
make up auto insurance
Collision Insurance
when two vehicle result in a car accident
Comprehensive Insurance
when one vehicle receives damage either naturally or from anything that’s not a car accident
Liability Insurance
insurance for when you are at fault for causing an accident
Full Coverage
when you have all three types of auto insurance
Long-term Care insurance
when an elderly person receives money for long-term care
