Personal Finance unit 4

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

Consumer Credit Reporting Reform Act

Allowing greater access for consumers to their credit file, including a free cop, of their credit report each year

Between chapter 7 and 13 bankruptcy, which one is easier to obtain credit after you have filed for bankruptcy?

Chapter 13

Give examples of closed ended, open ended, and line of credit.

Closed (loans, car loans, mortgage) Open (credit cards) line of credit ( personal, home equity)

simple interest

Compounded only on the principal

Annual Percentage Rate (APR)

Cost of borrowing money on an annual basis; takes into account the interest rate and other related fees on a loan.

Fair Debt Collection Act

Creates guidelines under which debt collectors may conduct business

Truth in Lending and Consumer Act

Designed to promote the informed use of consumer credit

What should you consider before using credit?

Do you have the cash you need for the down payment? do you want to use your savings instead of your credit?

equal opportunity Act

makes it unlawful for any credit or to discriminate against applicants

Line of Credit

maximum amount of money the creditor has had available to you

Closed end Credit (secured)

one-time loan that you pay back in equal

What do you need when applying for a loan?

personal information, ID.

Fair Credit Reporting Act

protections for consumers against unfair reporting and credit pulling

Credit

someone willing to loan you money, called principal in exchange for your promise to repay it usually with interest

indetedness

the condition of being deeply in debt

Finance Charge

the total amount paid to use credit

Grace Period

time between when loan is due and time in which you incur a late fee (10-15 days)

Co-signing

you agree to be responsible for the loan

What is an advantage of comparing APR among different credit card?

you can find the better APR deal

What is the charge for using credit called?

finance charge

bankruptcy

(Chapter 7) relieves an individual from debts arising from credit card and many but not all debts are forgiven. (no job) (Chapter 13) a debtor with regular income purpose plan for using future earnings or assets to eliminate debts (job)

Consumer Credit (important)

1. Major force in U.S. economy 2. Consumer credit dates back to colonial times 3. Installment credit was accepted in the 1900s

how many years will bankruptcy show up on your credit report?

10 years

how many days do you have to report a billing error on your credit statement?

60 days

What do lenders use to determine if they are going to grant credit?

Credit score, credit report.

when creditors look at credit card applications, what do you believe they look for?

Credit score/ Credit rating

what is the trade off of making small payments on your credit card?

Smaller payments but you have to pay more interest

Interest

The amount you pay to use someone else money

What are the names of the three major credit bureaus?

Trans union, Equifax, Experian

minimum monthly payment

avoid monthly minimum trap (credit card)

What happens to the remaining balance on your credit balance when you don't pay off the full amount?

carries on to the next month

Fair Credit Billing Act

designed to protect consumers from unfair credit billing practices

what is one of the biggest disadvantage of using credit cards?

easy to overspend


Kaugnay na mga set ng pag-aaral

Chapter 9: Examination and Treatment Areas

View Set

D204: The Data Analytics Journey

View Set

GA History ch 4 (fill in the blank notes, online quiz)

View Set

Chapter 7 - Operand Addressing And Instruction Representation

View Set

M3 Hardware Components of Personal Computer

View Set