CDAE158 Exam 2 Chapters 5-8

Chapter 13 Bankruptcy ( a wage earners plan)

A debtor with a regular income proposes to a bankruptcy court a plan for extinguishing his/her debts from future earnings or other property over a period of time The debtor normally keeps all or most of the property During the period the plan is in effect, which can be as long as five years, the debtor makes regular payments to a Chapter 13 trustee The trustee in turn distributes the money to the creditors

coupons and rebates also provide better pricing for wise consumers

A family saving about $8 a week on their groceries will save $416 over a year and $2080 over five years

chapter 11 bankruptcy

A reorganization requested by a business and ordered by the court because a business is unable to pay its debts

overdraft protection

An automatic loan made to checking account customers for checks written and payments in excess of the available balance Most overdraft plans make loans based on $50 or $100 increments Many financial institutions will allow you to cover checking account overdrafts with an automatic transfer from a savings account for a nominal fee

buying at dollar stores can result on bargains on many basic needs

Avoid expired food products, lookalikes posing as famous brands, items that might be more expensive when compared to the sales price at other stores, and potentially unsafe imported products such as extension cords, toys, vitamins, and jewelry

tips for credit card scams

Be aware of some credit cards that offer "no fee" or low interest but start charging interest from the day you purchase an item Watch out for credit cards that do not charge annual fees but instead charge a "transaction fee" each time you use the card If you're paying only the minimum amounts on your monthly statement, you need to plan your budget more carefully The longer it takes for you to pay off a bill,the more interest you pay The finance charges you pay on an item could end up being more than the item is worth With a grace period of 25 days, you actually get a free loan when you pay bills in full each month If you have bad credit history and problems getting a credit card, look for a savings institution that will give you a secured credit card if you open a savings account Your line of credit will be determined by the amount you have on deposit

Fair and Accurate Credit Transactions Act (April 28, 2003)

Requires the Federal Trade Commission to issue proposed rules to address identity theft concerns Defines identity theft as a fraud committed or attempted using the identifying information of another person without lawful authority Requires credit reporting agencies to develop and implement reasonable requirements for what info can be considered a consumer's proof of identity

Effect of bankruptcy on your job and your future credit

Some find obtaining credit more difficult after filing bankruptcy, others find obtaining credit easier bc they have relieved themselves of their prior debts or bc creditors know they cannot file nother bankruptcy case for a period of time Obtaining credit may be easier for people who file a chapter 13 bankruptcy and repay some of their debts than for people who file a Chapter 7 and make no effort to repay The bankruptcy law prohibits your employer from discharging you simply bc you have filed a bankruptcy case

the bankruptcy abuse prevention and consumer protection act of 2005

The director of the Executive Office for U.S Trustees develops a financial management training curriculum to educate individual debtors on how to better manage their finances; and test, evaluate and report to Congress on the curriculum's effectiveness Debtors complete an approved instructional course in personal financial management The clerk of each bankruptcy district maintains a list of credit counseling agencies and instructional courses on personal financial management May require that states develop personal finance curricula designed for use in elementary and secondary schools

unit pricing

Uses a standard unit of measurement to compare the prices of packages of different sizes. To calculate the unit price, divide the price by the number of units of measurement, such as ounces, pounds, gallons, or number of sheets Then compare the unit prices for various sizes, brands, and stores

Phishing Scam

Uses email spam or popup messages to obtain credit card #s, bank account info, Social Security #s, passwords or other personalinfo Look official, as coming from a financial institution, govt agency, etc Also occurred by phone (vishing) and by text (smishing)

cashier's check

a check of a financial institution

leasing a motor vehicle

a contractual agreement with monthly payments for the use of an automobile over a set period of time

installment cash credit

a direct loan of money for personal purposes, home improvements or vacation expenses you make no down payment and make payments in specified amounts over a set period

trust

a legal agreement that provides for the management and control of assets by one party for the benefit of another most commonly created through a commercial bank or lawyer investments and money in trust are managed by a bank and the necessary amounts go to children for their educational expenses

class action suit

a lgeal action taken by a few individuals on behalf of all the people who have suffered the same alleged injustice this group, called a class, is represented by a lawyer/group of lawyers

cash advances

a loan billed to your credit card can be obtained w credit card at bank or ATM or by using checks linked to credit card accounts special fee when taken out based on % of amount borrowed some charge minimum cash advance fee most cards do not have a grace period on a cash adcance on some cards, the interest rate on cash advances is higher than the rate on purchases =

installment sales credit

a loan that allows you to receive merchandise, usually high priced items such as large appliances and furniture

single lump sum credit

a loan that must be repaid in total on a specified day, usually within 30 to 90 days generally, but not always, used to purchase a single

Savings Bonds

a low risk savings program guaranteed by the federal government and that may be used to achieve financial goals EE bonds, I bonds

cooperative

a nonprofit organization whose member-owners save money on various products and services food cooperatives, usually based in a community group or church, buy grocery items in large quantities; the savings are passed onto the co-ops members in the form of lower food prices

small claims court

a person may file a claim involving amounts below a set dollar limit the maximum varies from state to state, ranging from $500 to $25,000; most states have a limit between $5,000, and $10,000 usually takes place without a lawyer

certified check

a personal check with guaranteed payment

many banks extend revolving check credit/bank line credit

a prearranged loan for a specified amount that you can use by writing a special check

529 plan

a qualified tuition plan with tax advantages to encourage savings for education prepaid tuition plans allow the purchase of future college credits at current prices education savings plans are investment accounts to save for future higher education expenses

money market accounts and funds

a savings account that requires a minimum balance and has earnings based on market interest rates money market accounts at banks and credit unions are covered by federal deposit insurance not true of money market funds, which are a product of investment companies

warranty

a written guarantee from the manufacturer or distributor that specifies the conditions under which the product can be returned, replaced or repaired

debit card/cash card

activates ATM transactions; also used for purchases you are spending your own funds you are not liable for unauthorized use; remember to report the fraud within 60 days of receiving your statement

special endorsement

allows you to transfer a check to someone else with the words "pay to the order of" followed by the name of the other person and then your signature

liquidity

allows you to withdraw your money on short notice without a loss of principal or fees to achieve long term financial goals, many people trade off liquidity for higher return

invoice price (dealer's cost)

an amount less than the sticker price

credit

an arrangement to receive cash, goods, or services now and pay for them in the future

prime rate

an indication of the rate banks charge large corporations

rolling over a CD

automatically buying a new one at maturity consider creating a CD portfolio with CDs maturing at different times this will give you some degree of liquidity and flexibility when you reinvest your funds

post purchase activites

automobile operating costs motor vehicle maintence

used car price negotiation

begin to determine a fair price by checking online for the prices of comparable vehicles, using sources such as Edmunds Used car prices and the Kelley Blue Book several influence the basic price of a used car, including the # of miles the car has been driven and the features and options of the vehicle a low-mileage car will have a higher price than a comparable car with high mileage the condition of vehicle and demand for the model also affect price

large scale bank

benefits - many branches, fee-free ATMs -latest digital banking services drawbacks - limited personal service, higher fees -potential online security concerns

regional, community bank

benefits -higher customer satisfaction -strong personal service drawbacks - limited number of branches -may not be in national ATM network

credit union

benefits -strong personal service -higher savings rates, lower fees drawbacks -few branches, limited fee-free ATMs -may have membership eligibility

online bank

benefits -higher customer satisfaction -higher yields on savings drawbacks -limited personal contact - no local branches

money market accounts/funds (more liquidity)

benefits: favorable rate of return (based on current interest rates), allows checks to be written, insured (money market accounts) drawbacks: higher minimum balance than regular savings, service charge and/or lower rate if below certain balance, not insured (money market funds)

certificates of deposit (CDs) less liquidity

benefits: guaranteed rate of return for time of CD, insured (when purchased from bank or comparable financial institution drawbacks: possible penalty for early withdrawal, minimum deposit

regular savings accounts

benefits: low minimum balance, ease of withdrawal, insured drawback: low rate of return

US Savings bonds

benefits: rate varies with interest rates (I-bonds), low minimum deposit, government guaranteed, exempt from state/local income taxes drawbacks: lower rate when redeemed within first five years

four common endorsement forms

blank, restrictive, special and remote deposit capture

comparison shopping can be beneficial when

buying expensive or complex items buying items you purchase often comparison shopping can be done easily different sellers offer different prices and servies product quality or prices vary greatly

debt payment to income ratio

calculated by dividing your monthly debt payments by your net monthly income experts suggest you spend no more than 20% of your net (after tax) income on consumer credit payments

the 5 Cs of Credit Managmenet

character, capacity, capital, collateral, conditions

credit repaid fraud

companies offer to clean up the credit reports of consumers with poor credit histories after paying hundreds of dollars, consumers find out these companies did nothing to improve their credit reports

to minimize ATM fees

compare several financial institutions use your bank's ATM to avoid surcharges find an online bank for no cost ATMs withdraw larger amount to avoid fees on several small transactions obtain cash back when checking out at supermarkets

wise online buying activites

conduct online research compare retailers make purchase plan for future purchases

restrictive endorse

consists of the words "for deposit only" followed by your signature and account #

what to do if your identity is stolen?

contact fraud departments of each of the three major credit bureaus (ask them to flag file with a fraud alert) contact the creditors for any accounts that have been tampered with or opened fraudulently file a police report the US secret service has jurisdiction over financial fraud cases; usually only investigates cases where dollar loss is substantial

limited warranty

covers only certain aspects of a product, such as parts, or requires the buyer to incur part of the costs for shipping or repairs

when repayment is early: rule of 78s

creditors sometimes use tables based on this formula to determine how much interest you have paid at any point in a loan this formula favors lenders and dictates that you pay more interest at the beginning of a loan, and when you have the use of more of the money, and pay less and less interest as the debt is reduced

use a credit card to

delay the payment for a purchase build a credit history with wise buying buy online or for major purchases earn more generous rewards points for spending

fixed ownership costs

depreciation interest on auto loan insurance license, registration, taxes and fees

open dating

describes the freshness or shelf-life of a perishable product

questions to consider before you decide how and when to make a major purchase

do i have the cash i need for the down payment? do i want to use my savings for this purchase? does the purchase fit my budget? could i use the credit I need for this purchase in some better way?

3 questions to ask yourself before deciding to borrow money

do i need a loan can i afford a loan can I qualify for a loan

foreign scams

do not reply to a letter of email from a nigerian bank or other foreign source promising all of part of a large sum of money the letter requests the recipients bank account # so the money can be transferred a type of pyramid scheme

frequent reasons for indebtedness

emotional problems, the use of money to punish, the expectation of instant comfort, keeping up with the Joneses, overindulgence of children, misunderstanding or lack of communication among family members, amount of finance charges

ATM, cash machine

facilitates financial transactions

variable operating costs

gasoline and oile tires maintenance and repairs parking and tolls

personal factors

gender, age, occupation, income, education, marital status, family size

I Bonds

has an interest rate based on two components: a fixed rate for the life of the bond, an inflation rate that changes twice a year every 6 months a new, fixed base rate is set for new bonds the additional interest payment is calculated twice a year, based on current annual inflation rate Sold in any amount over $25 and are purchased at face value 1 year minimum holding period Interest earning is added to the value of the bond and received when you redeem your bond

stock indexed CDs

have earnings based on the stock market

two factors for effective negotiation

having all the necessary info about the product and buying and situation dealing with a person who has the authority to give you a lower price or additional features, such as the business owner or store manager

truth in lending and consumer leasing acts

if a creditor fails to disclose info required under the truth in lending act or the consumer leasing act, gives inaccurate info, or does not comply with the rules, you may sue for actual damages that is, any money loss you suffer

secured loan

if you pledge property or other assets as collateral, you'll probably receive a lower interest rate

economic factors

inflation, interest rates, tax rates, government regulations, product safety

three most common types of closed-end credit

installment sales credit installment cash credit single lump sum credit

investments and other financial services

insurance protection, investing for the future, real estate purchases, tax assistance, and financial planning

add on interest method

interest is calculated on the full amount of the origional principal interest amount immediately added to original principal payment determined by dividing principal plus interest by the # of payments to be made when only one payment is required, this methods produces the same APR as the simple interest method; when two or more payments are to be made, the add on results in an effective rate of interest that is higher than the stated rate

consumer buying activities

involving daily consumer purchases and major household expenditures

consumer credit is based on trust in people's ability and willingness to pay bills when due

it works bc people by and large are honest and responsible

blank endorsement

just your signature, which should only be used when you deposit or cash a check in person, bc a check can be cashed by anyone once it has been signed

social factors

lifestyle, interests, hobbies, peer group, culture, advertising, media

use a debit card to

limit your spending to available money avoid bills that will be paid in the future avoid interest payment or an annual fee obtain better protection if you process a transaction as a credit card

two choices to get more cash

liquidate savings or borrow

open end credit

loans are made on a continuous basis and you are billed periodically for at least partial payment ex: cards issued by department stores, travel and entertainment cards, overdraft protections

expensive loans

loans from finance companies, retailers, and banks through credit card check cashers, finance companies, and others make small, short-term, high rate loans called payday loans, cash advance loans, check advance loans, post dated check loans or deferred deposit check loans tax refund loan -type of credit allows you to get an advance on a tax refund, APR as high as 7% borrowing from car dealers, appliance stores, dept stores, and other retailers

auto loans are available from banks, credit unions, consumer finance companies and other financial institution

many lenders will pre-approve you for a certain loan amount, which separates financing from negotiating the price of the car until the new-car price is set, you should not indicate that you intend to use the dealer's credit plan

optional equipment for cars may be viewed in three categories

mechanical devices to improve performance convenience options aesthetic features

mortgage companies

organized primarily to provides loans to purchase homes

the lowest interest rate or the lowest payment does not necessarily mean the best credit plan; consider the loan length

otherwise after two or three years, the value of your car may be less than the amount you still owe; this situation if referred to as upside down or negative equity if you default on your loan or sell the car at this time, you will have have to pay the difference

common mistakes when managing cash needs include

overspending as a result of impulse buying and using credit having insufficient liquid assets to pay current bills using savings or borrowing to pay for current living expenses failing to put unneeded funds in an interest-earning savings account or investment program

fair credit billing act (FCBA)

passed in 1975, sets procedures for promptly correcting billing mistakes, refusing to make credit card or revolving credit payments on defective goods, and promptly crediting your payments. defines a billing error as any charge for something you did not buy or for something bought by an unauthorized person

commonly overlooked trade offs when buying include

paying a higher amount over time when buying on credit for an item you need now buying unknown, possibly poor quality brands that are less expensive buying online, which saves time and money but may make it difficult to return, replace, or repaid purchased taking time and effort to comparison shop to save money and obtain better after-sale service

annual percentage rate (APR)

percentage cost of credit on a yearly basis key to comparing costs, regardless of the amount of credit or how much time you have to repay it

consumer finance companies types of loans; lending policies

personal installment loans, second mortgages often lend to consumers w/out credit history, make unsecured loans, vary rates according to size of loan balance, offer variety of repayment schedules, make higher %age of small loans than other lenders, max loan size limited by law, process applications quickly, often same day

credit unions types of loans; lending policies

personal installment loans, share draft credit plans, credit card loans, second mortgages lend to members only; make unsecured loans, may require collateral or cosigner for loans over specified amounts; may require payroll deductions to pay off loans; may submit large loan application to committee for approval; offer variety of repayment schedules

Preshopping Activities for Buying a Car

problem identification info gathering - personal contacts can provide info ab product performance, brand quality and prices business organizations offer advertising, product labels and packaging with basic facts about price, ingredients, quality and availability media sources offer purchase location availability, prices, shopping suggestions, and product reviews independent testing organizations such as consumers union, report the quality of products and services; underwriters laboratories (UL) test products for electrical and fire safety to assure items meet safety standards government agencies provide info sources, complain hotlines and educational programs

asset management account (cash management account, wealth management account)

provides complete financial services program for a single fee investment brokers and other financial institutions offer this all purpose account, which usually includes a checking account, a debit-credit card, online banking, mobile apps, and a line of credit for obtaining quick cash loans allow buying and selling stocks, bonds, mutual funds and other investments

A person may purchase up to $10,000 worth of savings bonds of each series (EE and I bonds) a year, for a total of $20,000

purchase limits

checking account selection factors

restrictions fees and charges special services interest

nonbank financial services providers

retailer stores (prepaid debit cards) online banking service provide online payment services (PayPal) P2P (peer to peer) lending intermediaries

new tech is making it more difficult to use, alter, or counterfeit credit and debit cards

security features being added include a holograph- a 3D laser produced optical device that changes its color and image as the card is tilted the use of UV ink, which displays credit card companies logo

three ways savings bonds are registered

single owner two owners with a beneficiary, who takes ownership of the bond when the original owner dies

commercial banks Types of Loans; Lending Policies

single payment loans, personal installment loans, passbook loans, check-credit loans, credit card loans, 2nd mortgage seek customers w/established credit history, often require collateral or security, prefer to deal in large loans, determine repayment schedules according to purpose of loan, vary credit rates according to type of credit/time period/customers credit history and security offered, may require several days to process new credit application

Set Up and Maintenance Fees

some will be assessed before you begin using your card and will reduce the amount of credit you initially have available annual fee ($20) account set up fee ($20 one time fee) $12 annual ($1/month) $5 annually (if applicable)

full warranty

states that a defective product can be fixed or replaced during a reasonable amount of time

mortgage rate

the amount individudals are paying for borrow for the purchase of a new home

character

the borrower's attitude toward his or her credit obligations

smartphones/mobile commerce

the concept that phones are now equipped to make purchases

finance charge

the total dollar amount you pay to use credit includes interest costs, and sometimes other costs such as service charges, credit related insurance premiums, or appraisal fees

consumer credit

the use of credit for personal needs (except a home mortgage) by individuals and families in contrast to credit used for business purposes

treasury bond rate

the yield on long term (20 year) US government debt obligations

smart cards

these digital wallets are similar to other ATM cards, but also contain an embedded microchip which may store data on past purchases, insurance info, and your medical history

the difference between the sticker price and the dealer's cost is usually the range available for negotiation

this range is large for full-size, luxury cars with more options; smaller, less expensive vehicles usually have a smaller negotiation range set price dealers use a no-haggling car selling strategy, with prices presented to be accepted to rejected

the use of wise purchasing strategies

timing of purchases purchase location brand comparison label, package info price comparison warranties

purchase location

your decision to use a particular retailer is probably influenced by location, price, product selection and services available retail competition and tech have resulted in greater emphasis on superstores, specialty shops and online buying this provides consumers with greater choice, potentially lower prices, and the need to carefully consider buying alternatives

capacity

your financial ability to meet credit obligations

What is in your credit files?

your name address, SS #, birth day your employer, position and income former address, former employer, spouses name SS # employer and income, whether you own your home, rent or board checking returned for insufficient funds

service contracts

agreements between a business and a consumer to cover the repair costs of a product called extended warranties, are not warranties; for a fee, these agreements protect the buyer from high servicing costs resulting from certain repairs and other losses beware of contracts that offer coverage for three years but really only cover two since the item has a manufacturer's 1 year warranty bc of costs and exclusions, some service contract may not be a wise financial decision you can minimize your concern ab expensive repairs by setting aside money to cover those costs

medium priced loans

borrowing from credit unions has advantages: provide free credit life insurance, are generally sympathetic to borrowers with legitimate payment problems, and provide personalized service can now offer the same range of consumer loans that banks and other financial institutions do over 109 million Americans belong to credit unions about 5,900 credit unions that hold $1.4 trillion in assets exist in the US

improving your credit score

get copies of your credit report and verify info pay bills on time understand how your credit score is determined learn the legal steps to take to improve your credit report beware of credit-repair scams

other financial services

insurance; trust service tax prep safe deposit boxes budget counseling estate planning

bank discount rate method (determining cost of credit)

interest calculated on the amount to be paid back and you receive the difference between the amount to be paid back and the interest amount

a consolidated financial services account has the benefits of

keeping track of finances in a single location fewer monthly and quarterly statements lower fees when working with one financial institution simplified tax reporting with dividends and interest on one form ease of communicating financial info to family members

penalty fees

late payment - $29 if balance is less or equal to $1000 $35 if balance is more than $1000 over the credit limit ($29) returned payment $35

nondeposit institutions

life insurance company investment company brokerage firm credit card company finance company mortgage company

minimum interest charge

$1.50

savings services

'time deposits' include money in savings accounts and CDs safe storage of funds for future use selection commonly based on interest rate earned, liquidity, safety and convenience

certificate of deposit rate

the rate for 6 month time deposits at savings institutions

APR for Purchases

8.99%, 10.99%, 12.99% introductory APR for one year, based on your creditworthiness after that, your APR will be 14.99%, this will vary with the market based on the prime rate

what kind of loan should you seek?

- two types of credit: closed end and open end bc installment loans may carry a lower interest rate, they are the less expensive credit option for loans that are repaid over a period of many months of years; however, bc credit cards usually provide a float period, they represent a cheaper way to make credit purchases that are paid off in a month or too once you have a credit card it's always easier than taking out an installment loan alternative is a travel and entertainment card (AMEX) -annual fees can be high; requires full payment each month but no finance charge

credit cards

7 out of 10 US households carry one or more credit cards 2 out of 3 households have at least one retail credit card, 56% have one or more Visa cards and about 47% have at least on MasterCard about half all credit card users generally pay off their balances in full each month; known as convenience users

APR for balance transfers

15.99% vary with the market based on the prime rate

APR for cash advances

21.99% vary with the market based on the prime rate

Penalty APR and when it applies

28.99% applies if you: make a late payment go over your credit limit make a payment that is returned do any of the above on another account that you have with us applies until you make six consecutive minimum payments when due

Chapter 7 bankruptcy

A debtor is required to draw up a petition listing his or her assets and liabilities The debtor submits the petition to a U.S. district court and pays a failing fee A person filing for relief under the bankruptcy code is called a debtor A straight bankruptcy in which many, but not all, debts are forgiven Most of the debtor's assets are sold ot pay off creditors However, certain assets of the debtor are protected to some extent Ex: social securit payments, unemployment compensation, limited values of your equity in a home, car or truck; household goods and appliances; trade tools; books and so forth are protected In filing a petition, a debtor must provide: A list of all creditors and the amount and nature of their claims The source, amount, and frequency of the debtor's income A list of all the debtor's property A detailed list of the debtors' monthly expenses The discharge of debts in Chapter 7 does not affect alimony, child support, certain taxes, fines, certain debts arising from educational loans, or debts that the debtor fails to properly disclose to the bankruptcy court At the request of a creditor, the bankruptcy judge may also exclude from the discharge debts resulting from loans the debtor received by giving the lender a false financial statement Debts arising from fraud, embezzlement, driving while intoxicated, larceny or certain other willful or malicious acts may also be excluded

Annual Percentage Yield (APY)

APY = 100 [(1 + Interest principal)365/days in term - 1]

Methods of Calculating Finance Charges

Adjusted Balance Method: add finance charges after subtracting payments made during billing period previous balance method: give you no credit for payments made during the billing period average daily balance method: most fair, add your balances for each day in the billing period and divide by the # of days in period Two cycle average daily balance method may include or exclude new purchases Instead of using the average daily balance for one billing cycle, use the average daily balance for two consecutive billing cycles New Credit CARD Act of 2009 bans this

What the CCCS does

Aiding families with serious debt problems by helping the, manage their money better and setting up a realistic budget and plan for expenditures Helping people prevent debt problems by teaching them the necessity of family budget planning, providing education to people of all ages regarding the pitfalls of unwise credit buying, suggesting techniques for family budgeting, and encouraging credit institutions to provide full information about the costs and terms of credit and to withhold credit from those who cannot afford to repay it CCCS counseling is usually free. However, when the CCCS administers a debt repayment plan, it sometimes charges a nominal fee to help defray administrative costs

monetary costs to the debtor under Chapter 13 bankruptcy

Court costs The debtor must pay a filing fee to the clerk of the court at the time of filing his/her petition. The filing fee may be paid in up to four installments if the court grants authorization Attorneys' fees These fees are usually the largest single item of cost Often the attorney does not require them to be paid in advance at the time of filing but agrees to be paid in installments after receipt of a down payments Fees range between $2000 and $4000 depending on the state, attorney, and complexity of your case Trustees' fees and costs The trustees' fees are established by the bankruptcy judge in most districts and by a US trustee in certain other districts

label info

Federal Law requires food labels contain the company name, address, ingredients, nutrients, and food allergy warnings Product labeling for appliances includes info about operating costs, to assist you in selecting the most energy efficient models

if you suspect or are an actual victim of identity theft, be sure to

File a police report immediately in the area where the item was stolen; this proves you were diligent and is a first step toward an investigation Call the three national credit reporting organizations to place a fraud alert on your name and Social Security number Complete an ID Theft Affidavit, available online Contact the Social Security Administration fraud line Check with your post office to determine if a fraudulent change-of-address was submitted Maintain a record of your actions- people you contacted, dates, reported filed

investment services

IRAs brokerage service investment advice mutual

Cost of Credit and Credit Card Accountability, Responsibility and Disclosure Act of 2009 (the Credit CARD Act(

Limits card issuers' ability to increase the APR on transferred balances during the first year that the account is opened Restricts card issuers from applying new (higher) interest rates to the existing card balances Requires companies to inform consumers of rate increase or other significant changes at least 45 days in advances States that teaser rates must stay in effect for at least 6 months Requires issuers to mail monthly statements at least 21 days before payment is due Makes new disclosure statements clear and more timely Mandates that monthly credit card statements must prominently display the due date and potential late fees, as well as the interest you have paid during the current year and the monthly payment required to pay off the existing balance. Statements must also warn consumers about the costs of making only the minimum payments Requires credit card issuers to post their standard card agreements on the internet Sets a consistent due date for card payments each month. If the due date falls on a holiday or weekend, the deadline is considered the next business day Restricts the penalties that card issuers can charge for going over the credit limit Prohibits card issuers from issuing cards to consumers under 21 unless they have a cosigner or can demonstrate that they have independent means to repeat the card debt

Consumer Credit Counseling Service (CCCS)

Local, nonprofit organization affiliated with the National Foundation for Consumer Credit (NFCC) Branches provide debt counseling services for families and individuals with serious financial problems. It is not a charity, a lending institution or a governmental or legal agency.

When comparing prices, remember that

More store convenience (location, hours, sales staff) usually means higher prices Ready-to-use products have higher prices Large packages are usually the best buy; however, compare using unit pricing Sale may not always mean saving money

brand comparison

National brand products are highly advertised items available in many stores Ex: Green Giant, Nabisco, Coca-Cola, Pepsi, Kellogg's, Kraft, Apple, Samsung, LG, Banana Republic, and Gap Brand name products are usually more expensive than non branded products, but they offer a consistency of quality for which people are willing to pay Store brand and private label products Sold by one chain of stores Low cost alternatives to famous name products

avoiding lease traps

Not knowing the total cost of the agreement, including the cost of the vehicle, not just the monthly payment Making a larger up-front payment than is required or paying unnecessary add-on costs Negotiating the monthly payment rather than the capitalized cost of the vehicle Not having the value of any trade-in vehicle reflected in the lease Signing a contract you don't understand Instead, compare monthly payments and other terms among several leasing companies People have been known to pay over $24,000 to lease a vehicle worth only $20,000 at the start of the lease agreement Comparison of leasing terms is available at websites such as www.leasesource.com, www.leaseguide.com, and www.carinfo.com

who may obtain a credit report?

Only properly identified persons for approved purposes may be furnished to prospective employers in response to a court order or in accordance with your written request in 2005 all consumers became eligible to receive a free credit report from each of the three major credit reporting agencies a good strategy is to ask for one report from a different agency every four months

rebate

Partial refund of the price of a product

danger signals of a debt problem

Paying only the minimum balance on credit card bills each month Increasing the total balance due on credit accounts each month Missing payments, paying late, or paying some bills this month and others next month Intentionally using the overdraft or automatic loan features on checking accounts or taking frequent cash advances on credit cards Using savings to pay routine bills such as groceries or utilities Receiving second or third payment notices from creditors Not talking to your spouse about money or talking only about money Depending on overtime, moonlighting or bonuses to meet everyday expenses Using up your savings Borrowing money to pay old debts Not knowing how much you owe until the bills arrive Going over your credit limit on credit cards Having little or nothing in savings to handle unexpected expenses Being denied credit because of a negative credit bureau report Getting a credit card revoked by the issuer Putting off medical or dental visits because you can't afford them right now Excessive indebtedness may also result in heavy drinking, neglect of children, martial difficulties, and drug abuse Paying only the minimum balance on credit card bills ach month can lead you to a bankruptcy

resolving consumer complaints

Step 1-initial communication Step 2-communicate with the company Step 3-consumer agency assistance Step 4-legal action

debt collection practices

The Federal Trade Commissions (FTC) enforces the Fair Debt Collection Practices Act (FDCPA) which prohibits certain practices by agencies that collect debts for creditors. The act does not apply to creditors that collect debts themselves. While the act does not erase the legitimate debts consumers owe, it does regulate the ways debt collection agencies do business

reconciling your checking account

To determine the correct balance, prepare a bank reconciliation to account for the difference between the bank statement and your checkbook balance Add up outstanding checks and withdrawals still outstanding Subtract the total Add up deposits in transit (deposits that have been made but are not reported on the current statement)

remote deposit capture

allows you to deposit a check with a phone app photo, may require a special endorsement such as "for remote deposit" followed by your signature and account #

collateral

an asset that you pledge to a financial institution to obtain a loan if you fail to honor the terms on the credit agreement, the lender can repossess the collateral and then sell it to satisfy the debt

wise buying strategies can result in

appropriate spending patterns avoiding the overuse of credit achieving goals and long term and financial security

inflation

at a time when the inflation rate was over 10% people with money in savings accounts earning 5-6% were experiencing a loss in buying power as inflation rate increases, the interest rates offered to savers also increase

transaction fees

balance transfer - either $5 or 3% of each transfer, whichever is greater cash advance - either $5 or 3% of each cash advance, whichever is greater foreign transaction 2% of each transaction in USD

store value (gift) cards

bankruptcy court treat gift-cards the same way they handle unsecured debt: if a retailer goes bankrupt, holders get pennies on the dollar at most- an in many cases nothing

home equity loan

based on the difference between the current market value of your home and the amount you still owe on your mortgage usually set up as a revolving line of credit, typically with a variable interest rate home is probably your largest asset only use for major items such as education, home improvements, or medical bills and not for daily expenses or lavish items

variable interest rate

based on the fluctuating rates in the banking system, such as prime rate you share interest rate risks with lender lender may offer you lower initial interest rate than with a fixed loan

automobile operation costs

based on two main factors: the size of your automobile and the # of miles you drive two main categories: fixed ownership costs variable operating costs

things to consider before you cosign a loan

be sure you can afford to pay the loan consider that even if you are not asked to repay the debt, your liability for this loan may keep you from getting the credit you want before you pledge property to secure the loan, make sure you understand the consequence check your state law request that a copy of overdue payment notices be sent to you so that you can take action to protect your credit histroy

debt to equity ratio

calculated by dividing your total liabilities by your net worth do not include value of your home/amount of its mortgage

automobile servicing sources

car dealers independent auto-repair shops mass merchandise retailers specialty shops

financial services and economic conditions

changing interest rates, rising consumer prices and other economic factors influence financial services learn about trends by reading the Wall Street Journal, Bloomberg Businessweek, Forbes and Fortune

activity accounts

charge a fee for each check written and sometimes a fee for each deposit in addition to a monthly service charge no minimum balance for people who only write a few checks each month and are unable to maintain the required minimum balance

pawnshop

charge higher fees than other financial institutions thousands of consumers are increasingly in need of small loans to be repaid in 30 to 45 days viewed as neighborhood bankers and local shopping malls provide both lending and shopping services, selling items that borrowers do not reclaim interest rates charged can range from 3% a month to over 100% a year

cash availability services

check cashing ATM/debit cards traveler's checks foreign currency exchange

payment services

checking account online payments cashier's checks money orders

cash availability and payment services

checking accounts, commonly called demand deposits and other payment methods

credit bureaus or Consumer Reporting agencies (CRAs)

collect credit and other info about consumer three major: Experian Information Solutions TransUnion Credit Information Companny Equifax Services Inc

shapoholics and young adults are most vulnerable to misusing credit

college students prime target for credit card issuers

deposit financial institutions

commercial bank savings and loan association credit union mutual savings bank

what to do if you can't make your payments

contact your creditors at once and try to work out a modified payment plan with them. If you have paid your bills promptly in the past, they may be willing to work with you. Do not wait until your account is turned over to a debt collectors, at that point the creditor has given up on you

implied warranty

covers a product's intended use or other basic understandings that are not in writing implied warranty of title indicates that the seller has the right to sell the product an implied warranty of merchantability guarantees that the product is fit for the ordinary uses for which it is intended

credit services

credit cards cash advances auto loans, educational loans mortgages home equity loans

three types of credit insurances

credit life insurance (most commonly purchased, provides for repayment of loan if borrower dies, most don't need credit life insurance), credit accident and health (disability) insurance credit property insurance

consumer credit dates back to colonial times

credit originally a privilege of wealthy; farmers came to use it extensively

calculating the after-tax savings rate of return

determine your top tax bracket for federal income taxes subtract this rate, expressed as a decimal, from 1.0 multiply the result by the yield on your savings account this #, expressed as a percentage is your after tax rate of return

3 alternatives in financing current purchases

draw on savings use present earnings borrow against expected future income each alternative has trade-offs: If you continually deplete your savings, little will be left for emergencies or retirement income If you spend your current income on luxuries instead of necessities, your well-being will eventually suffer If you pledge your future income to make current credit purchase, you will have little or no spendable income in the future

inflation erodes the purchasing power of money

each percentage point increase in inflation means a decrease of ~1% in the quantity of goods and services you can purchase with a given quantity of dollars as a result, lenders seeking to protect their purchasing power add the expected rate of inflation to the interest rate they charge you are willing to pay this higher rate bc you expect inflation to enable you to repay the loan with cheaper dollars

brokerage firms

employ investment advisors and financial planners, serve as agents between the buyer and seller for stocks, bonds and other investment securities

advantages of credit

enables people to enjoy goods and services now and pay for them later customers with previously approved credit may receive other extras provide shopping convenience and the efficiency. of paying for several purchases with one monthly payment safer to use can provide up to 50 day float, the time lag between when you make the purchase and when the lender deducts the balance from your checking accounts when the payment is due some large corporations such as General electric and General Motors issue their own Visa and MasterCard and offer rebates on purchases

motor vehicle maintenance

get regular oil changes (every 3,000 to 5,000 miles depending on vehicle recommendations) check fluids (brake, power steering, transmission) inspect hose and belts for wear get a tune up every 12,000-15,000 miles check and clean battery cables and terminals, check tire pressures regularly check spark plug wires after 50,000 miles keep lights, turn signals and horn in good working condition check muffler and exhaust pipes check tires for wear, rotate tires every. 7,500 miles check condition of brakes

disadvantages of credit

greatest is temptation to overspend, especially during periods of inflation failure to repay a loan may result in loss of income, valuable property and your good reputation does not increase total purchasing power costs money

certificates of deposits (CDs)

higher earning available to savers when they leave money of deposit for a set time period a savings plan requiring that a certain amount be on deposit for a set time period to earn a specific rate of return - these time deposits, called share certificates at a credit union, can be beneficial and safe savings alterantive

common trade offs related to financial services

higher returns for long-term savings will usually be achieved at the cost of low liquidity

cost of credit and tax considerations

home mortgage interest is still deductible, no longer can you deduct interest paid on consumer loans

building and maintaining your credit rating

if you apply, your credit experience or lack of it will be a major consideration for the creditor may affect your ability to get a job or buy life insurance a good credit rating is a valuable asset that should be nurtured and protected if you want a good rating, you must use credit with discretion: limit your borrowing to your capacity to repay, and live up to the terms of your contracts

lender risk vs interest risk

if you want to minimize your borrowing costs, you may need to accept conditions that reduce your lenders risk included a variable interest rate secured loan up front cash a shorter term

up front cash

many lenders believe you have a higher stake inr epaying a loan if you pay in cash fora large portion of what you are financing doing so may give you a better chance of getting the other terms you want by making a large down payment, you forgo interest that you might earn in savings accounts

term vs interest costs

many people choose longer term financing bc they want smaller monthly payments the longer term for a loan at a given interest rate, the greater the amount you must pay in interest

borrowing

many people use credit credit alternatives range from short-term accounts to long-term borrowing

rising-rate or bump-up CDs

may have higher rates at set intervals, such as every six months

rate of return (yield)

measures earnings on savings; the %age increase in the value of your savings from earned interest calculated by dividing the interest earned for the year by the amount in thesavings account

avoid the minimum monthly payment trap

minimum monthly payment- smallest amount you can pay and still be a cardholder in good standing

restrictions and fees

monthly maintenance fee for low balance accounts an inactivity fee if no deposits or withdrawals occur for 6 to 24 months a transaction fee for more than 6 withdrawals during a month a transfer fee by online banks for outgoing payments a wire transfer fee

check cashing outlets

more than 6,000 CCOs charge anywhere from 1 to 20% of the face value of a check' the average cost is 2-3%

payday loans

most frequent users are workers who have become trapped by debts or poor financial decision

time limits on adverse data

most of the info in your credit file may be reported for only 7 years if you have declared personal bankruptcy, that may be reported for 10 years unpaid tax liens can be reported for 15 years

certified preowned (CPO) vehicles

nearly new cars that come with the original manufacturer's guarantee of quality the rigorous inspection and repair process means a higher price than other used vehicles CPO programs were created to increase demand for the many low mileage vehicles returned at the end of a lease

common sources of used vehicles include

new car dealers offer late model vehicles and may give you a warranty, which usually means higher prices than at other sources used car dealers usually have older vehicles; warranties, if offered, will be limited; however, lower prices may be available individuals selling their own cars; these can be a bargain if the vehicle was well maintains; few consumer protection regulations apply; use caution auctions and dealers sell automobiles previously owned by businesses, auto-rental companies and government agencies used car superstores online used care business

drawbacks of leasing a vehicle

no ownership interest in the vehicle need to meet requirements similar to qualifying for credit possible additional costs incurred for extra mileage, certain repairs, turning the car in early, or even a move to another state

Travel and Entertainment (T&E) Cards

not credit cards bc monthly balance is due in full Diners Club, American Express

to minimize consumer problems, before making a purchase

obtain recommendations from friends, family and online reviews verify company affiliations, certifications and licenses understand the sales terms, return policies and warranty problems

commercial banks

offer a full range of financial services, including checking, savings and lending, along with other services organized as corporations with investors (stockholders) contributing the needed capital to operate include national banks, regional banks, community banks, and online only banks

liquid CDs

offer an opportunity to withdraw money without a penalty required to maintain a minimum balance in account

investment companies (mutual funds)

offer banking-type services money market fund- combination savings-investment plan in which the investment company uses your money to purchase a variety of short term financial instruments

rent to own centers

offer big screen TV, bedroom sets, kitchen appliances, and computers involves stores that lease products to customers who can own the item if they complete a certain # of payments

one type of loan from finance companies is currently less expensive than most other credit

often can be obtained at a rate of under 4% available from the finance companies of major automakers- General Motors Acceptance Corporations, Ford Motor Credit Company and others

2 situation where you should avoid credit

one in which you don't need or really want a product that will require financing one in which you can afford to pay cash

advantages of leasing a vehicle

only a small cash outflow may be required for the security deposit, whereas buying can require a large down payment monthly lease payments are usually lower than monthly financing payments the lease agreement provides detailed records for business purposes you are usually able to obtain a more expensive vehicle, more often

guidelines for personal consumer protection

only do business with reputable companies with a consistent record of satisfying customers avoid signing contracts and other documents you do not understand be cautious about the offerings that seem too good to be true- they probably are compare the cost of buying on credit with the cost of paying cash; also, compare interest rates the seller offers with those offered by a bank or credit union avoid rushing to get a good deal; successful con artists depend on impulse buying

checking out a used car

outside the car: look for major dents and signs of accidents, inspect the trunk and spare tire, check the tread wear, observe smoothness of springs and shocks when pushing down on car, check operation of doors and windows, look for leaking fluids under vehicle inside the car: look for wear on pedals and steering columns; check for operation of dash lights and accessories; check instrument panel for operation of gauges; start engine and check operation of power accessories such as radio, wipers, and heater the engine: check for leakage of fluids and overheating; check oil level and for signs of leaks; check radiator cap, radiator for cracks and repairs, and for oil in coolants; check battery and cables; expect a smooth, clean start the road test: let the vehicle warm up; test drive car on a road with which you are familiar; listen for smoothness of acceleration and transmission; check brakes at different speeds; check ease of steering and vehicle control

mutual savings bank

owned by the depositors and specialized in savings and mortgages located mainly in the northeastern US, profits on a mutual savings bank go to the depositors through higher rates on savings

inexpensive loans

parents/family members - may charge you only interest they would earn had they not made the loan (as little as 1%) -can complicate family relationships -should be in writing and state the interest rate, if any, repayment schedule and final payment date money borrowed on financial assets held by a lending institution i.e. a bank CD or the cash value of a whole life insurance policy - interest typically ranges from 5-7% -trade off is assets are tied up until you have repaid the loan

high cost financial service providers

pawn shop check cashing outlet payday loan company rent-to-own center car title loan company

federal savings bank (savings and loan associations) types of loans; lending policies

personal installment loans, home improvement loans, education loans, savings account loans, second mortgages will lend to all credit worthy individuals; often require collateral; loan rates vary depending on size of loan, length of payment, and security invovled

disaster related fraud

phony charities solicit funds for families of the victims

FDIC (Federal Deposit Insurance Corporation) coverage

prevents a loss of money due to the failure of the insured institution most savings plans at banks, savings and loan associations, and credit unions are insured by federal government agencies FDIC insures amount up to $250,000 per depositor per insured financial institutions

zero coupon CD

purchased at a deep discount with no interest payments your initial deposit grows to the maturity value of the CD in 12 years which is ~6% annual return

money order

purchased from financial institutions, post offices, and stores

procedure for proper check writing

record the date write the name of person or organization receiving the payment record the amount of the check in figures write the amount of the check in words sign the check note the reason for payment

capital

refers to assets or net worth generally, the greater your capital, the greater your ability to repay a loan you must authorize your employer and financial institutions to release info to confirm the claims made in the credit application

compounding

refers to interest that is earned on previously earned interest

conditions

refers to the general economic conditions that can affect your ability to repay a loan

types of checking accounts

regular checking accounts activity accounts interest-earning checking accounts

savings services

regular savings account money market account certificates of deposit US savings bonds

Fair Credit Reporting Act of (1971)

regulates the use of credit reports, requires the deletion of obsolete info and gives consumer access to their files and the right to have incorrect data corrected allows only authorized persons to obtain credit reports

interest-earning checking accounts

require minimum balance share draft account at a credit union

Truth in Savings Law

requires financial institutions to disclose the following info on savings account plans - fees on deposit accounts -interest rate -annual percentage yield (APY) -other terms and conditions of savings plan

Evaluating Alternatives to Buying a Car

selecting vehicle options comparing used vehicles: leasing a vehicle

EE Bonds

series EE bonds are most common involving amount greater than $25 increase in value as interest is earned monthly and compounds semiannually if you redeem bonds before 5 years, you forfeit latest 3 months of interest must be held for one year before it can be cashed continue to earn interest for 30 years

the internet can be used to compare interest rates for different loan sources and credit cards

shopping for credit is just as important as shopping for an automobile, furniture, or major appliances

opening a checking account

signature card required, a record of the official signatures of the person(s) authorized to write checks on the account

life insurance companies types of loans; lending policies

single payment or partial payment loans lend on cash value of life insurance policy; not date or penalty on repayment; deduct amount owed from value of policy benefit if death or other maturity occurs before repayment

creditors must tell you when finance charges on your account begin, so that you know how much time you have to pay your bills before a finance charge is added

some creditors give you a 21-25 day grace period to pay your balance in full before imposing a finance charge in most cases. this only applies if you have no outstanding balance on your card

finance companies

specializing in funding short term retail lending

IRS requirements for tax deductible travel

specific info ab the mileage, locations, dates and purpose of trips

callable CDs

start with higher rates and usually have long maturities with this savings option, if interest rates drop, the bank may "call" (close) the account after a set period

Equal Credit Opportunity Act (ECOA)

starts all credit applicants off on the same footing states that race, color, age, sex, marital status and certain other factors may not be used to discriminate against you in any part of a credit dealing credit rights of women are protected

Choosing a Financial Institution

take into consideration: -services offered interest rates -fees and charges -financial advice -safety (deposit insurance) -convenience -locations -online services -special programs rank them on importance prepare lists of banks and credit unions to decide do online/in-person research decide where you want to do business

3 Access Methods of financial service activites

text banking, providing account information and conducting transactions through text messages mobile web banking with internet access of the financial institution's website banking apps for perming various types of transactions

all economists now recognize consumer credit as a major force in the American economy

the aging of the baby boom generation (born between 1946 and 1964) has added to the growth of consumer credit this generation currently represents about 30% of the population but holds nearly 60% of the outstanding debt people in this group have always been disproportionate users of credit, since consumptions are highest as families are formed and homes are purchased and furnished

the true cost of leasing a car

the capitalized cost (the price of the vehicle) the money factor (the interest rate being paid on the capitalized cost) the monthly payment and number of payments the residual value (the expected value of the vehicle at the end of the lease)

corporate bond rate

the cost of borrowing for large US corporations

used car warranties

the federal trade commission (FTC) requires business that sell used cars to place a buyer's guide sticker in the windows of cars for sale this disclosure must state whether the car comes with a warranty and, if so, what protection the dealer will provide if no warranty is offered, the car is sold 'as is' and the dealer assumes no responsibility for any repairs, regardless of any oral claims

FICO and Vantagescore

the higher your score, the less risk you pose to creditors you need about a 760 to get the best mortgage rate and a score of 720 to get the best deal on an autoloan released recently, FICO score 9 is the most predictive score yet

simple interest

the interest computed on principal only and without compounding; the dollar cost of borrowing money based on three elements: amount borrowed (principal), rate of interest, and amount of time for which principal is borrowed formula: interest = principal x rate of interest x time

tax advantages of EE bonds include

the interest earned is exempt from state and local taxes federal income tax on earnings is not due until the bonds are redeemed redeemed series EE bonds may be exempt from federal income tax is the funds are used to pay tuitions and fees at college

co branding

the linking of a credit card with a business trade name offering points or premiums toward the purchase of a product or service popular after success of GM card 1992

the largest fixed expensive associated with a new automobile is depreciation

the loss in the vehicle's value due to time and use well maintained vehicles and certain high quality, expensive models depreciate at a slower rate

discount rate

the rate financial institutions are charged to borrow funds for the Federal Reserve Banks

a shorter term

the shorter the period of time for which you borrow the smaller the chance that something will prevent you from repaying and the lower the risk to the lender you may be able to borrow at a lower interest rate if you accept this, but your payments will be higher

sticker price

the suggest retail price printed on a vehicle label represents the base price of the car with costs of added features

T-bill rate

the yield on short term (13 weeks) US government debt obligations

savings and loan associations

traditionally specialized in savings account and home mortgages most offer financial services comparable to a bank

can you afford a loan?

two ways to calculate: add up all your basic monthly expenses than subtract this total from your take home pay. if the difference will not cover the monthly payment and still leave funds for other expenses you cannot afford the loan second and more reliable is to ask yourself what you plan to give up to make the monthly loan payment

impulse buying

unplanned purchasing, which can result in financial problems

determining purchase price

used car negotiations price bargaining for new cars comparing financing alternatives

credit union

user-owned, nonprofit, cooperative financial institution membership today is more flexible lower fees and loan rates with higher customer satisfaction levels for credit unions compared to other financial services

car title loans

usually due in 30 days typically have a cost similar to payday loans, often exceeding 200%

regular checking accounts

usually have a monthly service charge that you may avoid by keeping a minimum balance in the account

express warranty

usually in written form created by the seller or manufacturer and has two forms: the full warranty and limited warranty

regular savings accounts

usually involve low or no minimum balance at a credit union called share accounts

new car warranties

vary in time, mileage and parts they cover main conditions are: coverage of basic parts against defects powertrain coverage for the engine, transmission and drive train the corrosion warranty, usually applies only to holes due to rust not surface rust

common auto repair scams

when checking the oil the attendant puts the dipstick only partially down and then shows you that you need oil an attendant cuts a fan belt or punctures a hose you are shown a dirty air filter but it's not from your car. you are told you need to buy a new one a garage employee puts some liquid on your battery and then tries to convince you it's leaking + you need a new battery removing air from a tire instead of adding air to it can make an unwary driver open to buying a new tire or buying an unneeded patch on a tire that is in perfect condition the attendant puts grease on a shock absorber or on the ground and then tells you your present shocks are dangerous and you need new ones you are charged for two gallons of antifreeze with a radiator flush when only one gallon was put in

changing interest rates and decisions related to financial services

when interest rates are rising: use long term loans to take advantage of current low rates select short-term savings instruments to take advantage of higher rates when they are mature when interest rates are falling: use short term loans to take advantage of lower rates when you refinance the loans selecting long term savings instruments to "lock in" earnings at current high rates

simple interest on the declining balance (declining balance method)

when more than one payment is made on a simple interest loan, this is the method of computing interest since you only pay interest on the amount of the original principal that you have not yet repaid, the more frequent the payments, the lower interest you will pay many credit unions use this method for their loans

highballing

when offered a very high amount for a trade-in vehicle, with the extra amount made up by increasing the new car price

lowballing

when quoted a very low price that increases when add-on costs are included at the last moment

What your credit card company has to tell you

when they plan to increase your rate or other fees (most notify you 45 days before increase) if they plan to change the terms of your card, they must give you option to cancel the card before new increases take effect does NOT have to send you an advance notice if - you have variable interest rate tied to an index your intro rate expires and reverts to the previously disclosed go-to rate your rate increases bc you haven't made your payments as agreed

life insurance companies

while the main purpose of life insurance is to provide financial security for dependents, many life insurance policies contain savings and investment features

Credit and Age

you may not be denied credit bc you receive social security or public assistance, but as with age, certain info related to this source of income could have a bearing on your creditworthiness

closed end credit

you pay back one-time loans in a specified period of time and in payments of equal amounts ex: mortgage loans, auto loans, installment loans, single-lump sum credit

to avoid paying interest on purchases

your due date is at least 25 days after the close of each billing cycle we will not charge you any interest on purchases if you pay your entire balance by the due date each month