Personal Finance Unit 3

How can you build a good credit history?

1. Establish a steady work record 2. Open a checking account and don't bounce a check 3. Open a savings account and make regular deposits. 4. Pay your bills on time 5. Get a local retail or gas card and and pay it off right away.

Are signs of credit trouble?

1. next months bills are due and you haven't paid last months bills 2. getting frustrated having to write checks 3. knowing what overdue notices look like 4. Avoiding opening the mail

What is a credit card benefit that pays the cardholder a small percentage of their net expendityres, often in cash, payment toward their next balance, reward points, travel miles, or gift cards?

Cash back/Cash reward

What are the 3 C's of credit?

Character, Capacity, Capital

What do you have to put on a credit application?

Name of employer, Salary, Current Adress, Living situation(rent or own), Bank references

What are the benefits of a gas card?

Record of fuel expenses, discounts on purchases

Why would a business offer you 15% to open a credit card? How could they make money on your purchase for that day?

To lure you into opening a credit card. They charge a high interest rates, so if you don;t pay off the balance you pay lots of interest.

What are 4 ways you can protect yourself from identity theft?

Watch your bank statments and credit card bills, Avoid identity theft on the internet-use secure websites, Review your credit record and report fraudutent activity, Protect your personal information.

What is Capital/Collateral?

What the borrower could sell if they need to come up with cash to pay their depts

What is the function of a credit bureau?

collect paying habits of consuemers

What type of credit card has the highest interest rate?

store card

What is capacity?

your ability to pay back items with your income

What is Character?

your moral duty to pay back bills, money habits, and payment history