Consumer Credit

							Consumer Credit
 Understanding Credit
        11.1
Credit is the supplying of _____, ______ or
______ at present in exchanage for the
promise of future payment

The original amount borrowed or
__________ plus interest is the total
amount borrowed.
The business or organization that extends
credit is the ____________
           Types of Credit
What is the difference between cash credit
and sales credit?
    What is the difference between
    secured and unsecured credit?
   Secured credit is
    __________________________________
    __________________________________

   Unsecured credit is
    __________________________________
    __________________________________
Property pledged to guarantee repayment is
known as ___________________
A line of credit that can be used repeatedly
is called _____ _____ ______
One time extension of credit for a specific
amount of time is _______ _____ ______
When an agreement of credit calls for the
repayment to be done in one payment it is
called a ______ _______ _________.
When borrowers pay a regular scheduled
interval payments it is called __________
 Name 2 pros and 2 cons of credit
Pros             Cons
List and explain 3 costs of credit
1.   _______________________________

2.   _______________________________

3.   _______________________________
     List 3 Drawbacks of Credits
1.   ________________________________

2.   ________________________________

3.   ________________________________
Qualifying for Credit
         11.2
     Name and explain the 3 C’s of
               Credit
1.   ______________________________

2.   ______________________________

3.   ______________________________
     Name 6 items found on a credit
               application
1.
2.
3.
4.
5.
6.
   What does the Equal Credit
 Opportunity Act protect? Name 7
1.
2.
3.
4.
5.
6.
7.
     Name the 3 credit bureaus.
1.
2.
3.
   What does the credit rating tell a lender?



   How is a credit score determined. Name
    few areas
 Name 3 steps to take to establish
             credit.
1.   ________________________________

2.   ________________________________

3.   ________________________________
Managing Credit Cards
         11.3
Private Label cards can only be used at a
  single retailer Give 3 examples
_____________ __________ ___________

General purpose cards-called bank cards can
 be used at different businesses around the
 country. Give two examples _________
 _________
 Revolving Credit cards—what three
  options does a person have when paying
  the monthly payment.
1.
2.
3.
   Affinity card      Prestige or status
                        cards
   Smart card
                       Co-branded
Name 7 terms you should compare
   when opening a credit card
1.              5.
2.              6.
3.              7.
4.
Credit limit means ?
What does the Truth in Lending Act
            Protect?
See page 275
 If you were making a commercial about
 Credit cards—give some (three) pointers
         about using credit cards.

1.

2.

3.
     If you were making a commercial about
     Credit cards—give some (three) pointers
          about safeguarding your card.
1.

2.

3.
  What does the Fair Credit Billing
             Act do?



If you have a billing problem with your
credit card, what should you do?
Taking Out a Loan
       11.4
Types of Loans—Explain what they
             are for?
 Home equity
 Home Improvement
 Vehicle loan
 Personal loan
 Student loan
 Payday loans (good or bad??? Why?)
 Insurance policy loans
   If you were giving a personal loan to
someone what guidelines would you follow?
1.
2.
3.
4.
5.
6.
7.
1. What is a consumer finance company?
2. Who would use this type of company?
1.   ______________________________



2.   ______________________________
What is a loan shark?
   Explain the Following Types of
               Loans
Balloon payment       Add on clause




Acceleration clause
What is a right of rescission? For
   how many days? Explain
Handling Debt Problems
         11.5
        Define these terms:
Lien—             Default—

Garnishment—      Repossession—

Delinquent—       Collection agency
 What warning signs indicate signs of debt
              problems….
1.

2.



3.
          Climbing Out of Debt
   Working with creditors (Explain)

   Name some self help measures

   Credit counseling (explain)

   What is debt consolidation?
               Bankruptcy?
   What is this? Name the two types of
    personal bankruptcy used by consumers.
    (Take a look at Ch. 7 & 13)
     Review & Activities P. 292
1.

2.

3.

4.
5.

6.

7.

8.

9.
10.

11.

12.

13.

14.
15.

16.

17.