Borrowing Money Standard 7 Assessment

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Borrowing Money Standard 7 Assessment"

Transcription

1 1 Name: Class Period: Borrowing Money Directions: Match each description in the column below with the CORRECT term from the list. Write the letter of the term in the space provided. A. Interest B. Interest Rate C. Loan Agreement D. Secured Credit E. Installment Credit F. Credit Bureau G. Credit History H. Truth in Lending Act I. Equal Credit Opportunity Act J. Fair Debt Collections Practices Act K. Consumer Credit Reporting Act L. Credit Repair Organizations Act A type of contract between the borrower and the lender explaining the requirements of fulfilling the loan. The percentage rate of interest charged to the borrower. Makes it illegal for groups to make false promises or claims about improving your credit history. Prohibits debt collectors from engaging in unfair, deceptive, or abusive practices when collecting debts. An official record of a borrower s credit activity, including borrowing and payments. Payment for the use of someone else s money. A loan repaid with a fixed number of equal payments. An establishment that collects and distributes credit information of individuals and businesses. Credit with collateral for the lender. Ensures all individuals have an equal opportunity to receive credit or loans.

2 Requires all lenders to inform potential lenders about the cost of borrowing money, including finance charges and the annual percentage rate. Requires free credit reports for the unemployed, persons on public assistance, and fraud victims. Directions: Circle the letter of the choice that BEST completes each statement. 13. When you apply for a loan, most lenders will check your score. a. FICO b. EPASS c. Consumer Credit d. Personal Finance Test 14. Which of the following statements is FALSE? a. Qualifications for borrowing money are basically the same from lender to lender. b. Lenders are most concerned about your ability to repay the loan. c. Building a good relationship with a banker can help you get a loan. d. When shopping for a loan, it pays to compare lenders. 15. Most credit cards are a. the same as cash. b. not reported to the credit bureau. c. an example of installment credit. d. an example of secured credit. 16. People borrow money because a. it is a convenient, low cost way to make purchases. b. they do not have enough cash or savings to make a purchase. c. they do not make enough money. d. they are uninformed about other ways to make purchases. 17. Which of the following is the BEST reason to borrow money? a. To buy a new pair of shoes for the prom b. To pay your cell phone bill c. To pay off your credit cards d. To buy a house

3 3 18. A prepayment clause allows the borrower to a. borrow additional funds as needed. b. make additional payments or pay off a loan early. c. pay lower interest rates if they make their payments on time. d. skip a loan payment without penalty when they do not enough money to pay their bills. 19. APR is the a. Applied Personal Rate. b. Applied Percentage Rate. c. Annual Percentage Rate. d. Annual Personal Rate of Interest. 20. MOST consumer credit laws are designed to a. punish consumers for making poor choices when borrowing money. b. punish lenders for mistreating consumers. c. ensure that consumers and lenders are treated fairly and equally. d. make it more difficult for consumers to get loans. 21. When computing your credit score, the most important factor is do you a. pay your bills on time? b. use credit cards? c. work for the government? d. need the money? 22. When making credit card payments, always pay a. the minimum amount requested on the statement. b. more than the minimum amount requested on the statement. c. with a check. d. with cash. 23. Which of the following statements is TRUE? a. Higher FICO scores results in higher interest rates. b. Higher FICO scores results in higher payments on loans. c. Lower FICO scores result in lower interest rates. d. Lower FICO scores result in higher interest rates.

4 4 24. Your credit file contains much information about you, including a. your age. b. your race. c. the number of times you apply for credit. d. the place where you work and your supervisor s name. 25. Which of the following is an example of secured credit? a. Borrowing to buy a car b. Getting a credit card c. Making payments to pay for a hospital bill d. Borrowing to pay for a vacation 26. Interest rates on credit cards a. vary with your level of income. b. are basically the same for everyone. c. will vary greatly, depending upon several factors. d. will vary little from credit company to credit card company. 27. Your credit score will impact all of the following EXCEPT your a. ability to get a job. b. ability to get an apartment. c. interest rates. d. monthly balance. 28. Which of the following types of lenders offers loans to high risk customers at very high fees? a. Payday loan companies b. Credit card cash advance c. Home equity bank loans d. Credit unions 29. Most negative information such as late payments and defaults on loans stays in your credit file for years. a. 2 b. 15 c. 7 d. 10

5 5 30. If your credit card is lost or stolen and you report it immediately to your credit card company, the most you can lose is a. $10. b. $25. c. $50. d. $ In Oklahoma, MOST consumer protection laws are enforced by the a. Oklahoma Bankers Association. b. Oklahoma Department of Treasury. c. State Office of Personal Finance. d. State Attorney General s Office. 32. If you want to dispute any information included in your credit file, you a. must sue the credit bureau. b. need an attorney to write a letter. c. need to write a letter or file a report online with the credit bureau. d. have no right to protest and must wait until the credit bureau removes it from your file. 33. Before applying a loan, it is advisable to a. get a copy of your credit report to check it for errors. b. ask your banker to review your report to see if you will qualify. c. ask your creditors to remove any negative information from your credit file. d. wait to see what happens, then complain if something is wrong with your credit file. 34. Lenders in the United States rely on three primary credit bureaus. Which of the following is NOT one of them? a. Experian b. Equifax c. Equitable d. TransUnion

Good Debt, Bad Debt U S I N G C R E D I T W I S E L Y

Good Debt, Bad Debt U S I N G C R E D I T W I S E L Y Good Debt, Bad Debt U S I N G C R E D I T W I S E L Y What is Credit? Someone is willing to lend you money (principal) in exchange for your promise to repay it, usually with interest. Interest amount you

More information

It Is In Your Interest

It Is In Your Interest STUDENT MODULE 7.2 BORROWING MONEY PAGE 1 Standard 7: The student will identify the procedures and analyze the responsibilities of borrowing money. It Is In Your Interest Jason did not understand how it

More information

Remember the Interest

Remember the Interest STUDENT MODULE 7.1 BORROWING MONEY PAGE 1 Standard 7: The student will identify the procedures and analyze the responsibilities of borrowing money. Remember the Interest Mom, it is not fair. If Bill can

More information

BMG LoansAtWork. Credit Education Program

BMG LoansAtWork. Credit Education Program BMG LoansAtWork Credit Education Program V Course Objectives Identify ways to decrease spending and increase income Discuss common debt traps to avoid Brief discussion of identity theft Define credit Explain

More information

Participant Guide Building: Knowledge, Security, Confidence FDIC Financial Education Curriculum

Participant Guide Building: Knowledge, Security, Confidence FDIC Financial Education Curriculum Borrowing Basics Building: Knowledge, Security, Confidence FDIC Financial Education Curriculum TABLE OF CONTENTS Page What Is Credit? 1 Why Is Credit Important? 1 Types of Loans 2 Practice Exercise: Types

More information

Chapter Objectives. Chapter 6. Short Term Credit Management. Major Topics. Reasons for Using Credit. How to Get Credit. Disadvantages of Using Credit

Chapter Objectives. Chapter 6. Short Term Credit Management. Major Topics. Reasons for Using Credit. How to Get Credit. Disadvantages of Using Credit Chapter Objectives Chapter 6. Short Term Credit Management To evaluate reasons for and against using credit and decide whether or not credit is appropriate for you. To be able to take the necessary steps

More information

CREDIT SCORE MANAGEMENT

CREDIT SCORE MANAGEMENT ARVEST BANK PRESENTS: CREDIT SCORE MANAGEMENT by LA TWAN CHEATHEM COMMERCIAL LENDER Credit History Credit history is one factor that determines a person's credit score. Things considered negative on a

More information

Journal Entry #10. Part 1: What do you hope to learn about credit?

Journal Entry #10. Part 1: What do you hope to learn about credit? Journal Entry #10 Part 1: What do you hope to learn about credit? Part 2: Would you trust yourself right now with a credit card? In other words If you were given a credit card right now, would you use

More information

BUILD A SOLID CREDIT HISTORY

BUILD A SOLID CREDIT HISTORY BUILD A SOLID CREDIT HISTORY WHAT IS CREDIT? Credit is money that you borrow, usually in the form of a credit card or loan, with the promise to pay it back. Why is it important to have good credit? There

More information

Looking for the Best Mortgage?

Looking for the Best Mortgage? Looking for the Best Mortgage? Shop, Compare, Negotiate Shopping around for a home loan or mortgage will help you to get the best financing deal. A mortgage whether it s a home purchase, a refinancing,

More information

Credit Histories & Credit Scores

Credit Histories & Credit Scores Credit Histories & Credit Scores Credit Histories - Definition A continuing record of a borrower s debt commitments and how well they have been honored. (Similar to a transcript) Credit Score - Definition

More information

CreditShop Financial Educa3on Program July 2015

CreditShop Financial Educa3on Program July 2015 CreditShop Financial Educa3on Program July 2015 What is a Personal Installment Loan? A personal installment loan is a one 3me loan where the principal loan amount plus interest are repaid in equal payments

More information

The ABCs of Credit Credit Scores Establishing Credit Maintaining Good Credit Credit Cards Managing Credit Challenges

The ABCs of Credit Credit Scores Establishing Credit Maintaining Good Credit Credit Cards Managing Credit Challenges The ABCs of Credit Credit Scores Establishing Credit Maintaining Good Credit Credit Cards Managing Credit Challenges CREDIT DEFINITIONS Credit Trust given to another person for future payment of a loan,

More information

Personal Loans 101: Understanding

Personal Loans 101: Understanding Personal Loans 101: Understanding Small Dollar Loans If you are looking for a small loan, you may not be sure where to turn. Most banks and credit unions do not lend small amounts of money. Payday loans

More information

Using Credit to Your Advantage.

Using Credit to Your Advantage. Using Credit to Your Advantage. Topic Overview. The Using Credit To Your Advantage topic will provide participants with all the basic information they need to understand credit what it is and how to make

More information

Understanding a Credit Report! April 21, 2011. New York City Department of Consumer Affairs. All rights reserved.

Understanding a Credit Report! April 21, 2011. New York City Department of Consumer Affairs. All rights reserved. Understanding a Credit Report! Questions to Think About What are the different types of credit and why is credit important? What is a credit report? How does credit impact future financial goals? 3 What

More information

Agenda. 1. Assessing Your Situation A. 3 types of consumers B. Net Worth C. Net Cash Flow

Agenda. 1. Assessing Your Situation A. 3 types of consumers B. Net Worth C. Net Cash Flow 1 Agenda 1. Assessing Your Situation A. 3 types of consumers B. Net Worth C. Net Cash Flow 2. Revolving Credit A. Credit vs. Charge vs. Debit Cards B. Tips on Revolving Credit C. Home Equity Line Credit

More information

Topic 3 Credit Report

Topic 3 Credit Report Topic 3 Credit Report Questions to Think About: What are the different types of credit and why is credit important? What are its advantages and disadvantages? What is a credit report? How do you read it

More information

Understanding Credit Cards

Understanding Credit Cards Understanding Credit Cards INTRODUCTION This brochure can help you understand how credit cards work, become familiar with common terms offered with a credit card, and avoid the dangers of using credit

More information

CREDIT SCORE A COMPREHENSIVE GUIDE TO YOUR. arborfcu.org

CREDIT SCORE A COMPREHENSIVE GUIDE TO YOUR. arborfcu.org A COMPREHENSIVE GUIDE TO YOUR CREDIT SCORE You hear a lot of things about your credit score and how important it is, but how much do you really know about it? Courtesy of Arbor Financial Credit Union This

More information

Maureen Baran SVP Business Development. Kris Bona Business Relationship Officer

Maureen Baran SVP Business Development. Kris Bona Business Relationship Officer Williams College Maureen Baran SVP Business Development Kris Bona Business Relationship Officer Agenda What is credit and why is it so important? Credit reports and credit scores Building credit Comparing

More information

Your Credit Report. Trade lines. The bulk of a credit report is dedicated to your history of handling credit. It includes:

Your Credit Report. Trade lines. The bulk of a credit report is dedicated to your history of handling credit. It includes: Your Credit Report The three major credit bureaus in the United States are Experian, TransUnion, and Equifax. These companies acquire data from banks, credit unions, mortgage lenders, and retail establishments.

More information

Standard 7: The student will identify the procedures and analyze the responsibilities of borrowing money.

Standard 7: The student will identify the procedures and analyze the responsibilities of borrowing money. TEACHER GUIDE 7.2 BORROWING MONEY PAGE 1 Standard 7: The student will identify the procedures and analyze the responsibilities of borrowing money. It Is In Your Interest Priority Academic Student Skills

More information

Credit Workshop. What I need to know about credit and lending products of financial institutions. Financial Education Supported by:

Credit Workshop. What I need to know about credit and lending products of financial institutions. Financial Education Supported by: Credit Workshop What I need to know about credit and lending products of financial institutions. Financial Education Supported by: Concept Checklist What will I learn today? [ ] What is Credit? [ ] Advantages/

More information

CHAPTER 6. Use and Misuse of Credit. Good Debt, Bad Debt. Advantages of Credit. What is Consumer Credit? Advantages of Credit (continued)

CHAPTER 6. Use and Misuse of Credit. Good Debt, Bad Debt. Advantages of Credit. What is Consumer Credit? Advantages of Credit (continued) CHAPTER 6 Introduction to Consumer Credit Personal Finance 7e Kapoor Dlabay Hughes 6-1 Use and Misuse of Credit Before you use credit for a major purchase, ask yourself some questions. Do I have the cash

More information

Understanding Credit. Megan Stearns, Credit Counselor

Understanding Credit. Megan Stearns, Credit Counselor Understanding Credit Megan Stearns, Credit Counselor Obtaining your free credit report will lower your credit score. Closing old accounts can help your credit score. Paying off the balances on your credit

More information

REVIEW.The Credit Process

REVIEW.The Credit Process REVIEW.The Credit Process Credit when goods, services, and/or money are received in exchange for a promise to pay back a definite sum of money at a future date. Wants to acquire an item Does not have enough

More information

NEFE High School Financial Planning Program Unit 4 Good Debt, Bad Debt: Using Credit Wisely. Unit 4 - Good Debt, Bad Debt: Using Credit Wisely

NEFE High School Financial Planning Program Unit 4 Good Debt, Bad Debt: Using Credit Wisely. Unit 4 - Good Debt, Bad Debt: Using Credit Wisely Unit 4 - Good Debt, Bad Debt: Using Credit Wisely Credit Facts Nearly 33% of teens owe money to either a person or company, with an average debt of $230. About 26% of teens ages 16-18 already have more

More information

Top5. Mortgage. Renewal Tips. to save you. Time & Money

Top5. Mortgage. Renewal Tips. to save you. Time & Money Top5 Mortgage Renewal Tips to save you Time & Money If you re like most Canadians, your mortgage is your biggest monthly expense. It pays to plan ahead and consider these 5 key mortgage renewal tips: 1.

More information

SS.912.FL.4.3. Assignment 8 Steps 1 and 2

SS.912.FL.4.3. Assignment 8 Steps 1 and 2 FL-V2-012015 Standard 4: Using Credit Code SS.912.FL.4.1 Discuss ways that consumers can compare the cost of credit by using the annual percentage rate (APR), initial fees charged, and fees charged for

More information

Using Credit to Your Advantage

Using Credit to Your Advantage Hands on Banking Using Credit to Your Advantage Credit Reports, Credit Scores and Dealing with Debt The Hands on Banking program is a free public service provided by Wells Fargo. You may also access the

More information

Understanding, managing, and rebuilding your credit

Understanding, managing, and rebuilding your credit Understanding, managing, and rebuilding your credit Objective Bank of America is committed to providing information that will help you understand the effect credit can have on lending, and what you can

More information

Mortgage Fraud Home Equity Scams Choosing a Loan

Mortgage Fraud Home Equity Scams Choosing a Loan Mortgage Fraud You could lose your home and your money if you borrow from unscrupulous lenders who offer you a high-cost loan based on the equity you have in your home. Certain lenders target homeowners

More information

Establishing and maintaining good credit is an important part of financial planning. Typically most individuals do not have enough cash on hand for

Establishing and maintaining good credit is an important part of financial planning. Typically most individuals do not have enough cash on hand for Basics of Credit Establishing and maintaining good credit is an important part of financial planning. Typically most individuals do not have enough cash on hand for emergencies, or to make major purchases

More information

What We Need to Know About. Credit Management & Credit Repair for Entrepreneurs

What We Need to Know About. Credit Management & Credit Repair for Entrepreneurs What We Need to Know About. Credit Management & Credit Repair for Entrepreneurs What is Credit? When someone lends you money, and you pay them back with interest, they have extended you credit. Credit

More information

Module 4: Credit Reports & Credit Scores

Module 4: Credit Reports & Credit Scores Module 4: Credit Reports & Credit Scores Teaching Notes: This module explains credit scores and credit reports, accessing and understanding them. Banks and lenders use FICO scores (a specific credit score)

More information

Mortgage Loans. Understand the Terms of Your Loan before You Sign. Mortgage Loans. Standard Home Equity Loans or Second Mortgages

Mortgage Loans. Understand the Terms of Your Loan before You Sign. Mortgage Loans. Standard Home Equity Loans or Second Mortgages Mortgage Loans Understand the Terms of Your Loan before You Sign This brochure can help you determine what is best for your situation, become familiar with mortgage loan terms, and learn what is involved

More information

Credit Repair ebook. You don t have to pay money to repair your credit Our ebook will teach you: MagnifyMoney

Credit Repair ebook. You don t have to pay money to repair your credit Our ebook will teach you: MagnifyMoney MagnifyMoney Credit Repair ebook You don t have to pay money to repair your credit Our ebook will teach you: How to get your credit report, for free How to dispute incorrect information for free How to

More information

Sample Letter to Collection Agency Requesting Verification of Debt

Sample Letter to Collection Agency Requesting Verification of Debt Sample Letter to Collection Agency Requesting Verification of Debt and address I was recently informed that I owe a debt in the amount of $ (list amount of debt) to (list original creditor). I don't believe

More information

Building a Strong Credit History

Building a Strong Credit History Building a Strong Credit History Having good credit improves your ability to get loans, insurance, credit cards, a job, an apartment, and gives you the chance to get lower interest rates on loans and credit

More information

MANAGING CREDIT101 TM %*'9 [[[ EPXEREJGY SVK i

MANAGING CREDIT101 TM %*'9 [[[ EPXEREJGY SVK i MANAGING CREDIT101 TM i This book is intended as a general guide to the topics discussed, and it does not deliver accounting, personal finance, or legal advice. It is not intended, and should not be used,

More information

YOUR GOOD CREDIT The Importance of Your Credit Report and Your Credit Score Maintain Good Credit Combat Identity Theft FACT Act Rights

YOUR GOOD CREDIT The Importance of Your Credit Report and Your Credit Score Maintain Good Credit Combat Identity Theft FACT Act Rights YOUR GOOD CREDIT The Importance of Your Credit Report and Your Credit Score Maintain Good Credit Combat Identity Theft FACT Act Rights WHY YOU NEED TO KNOW ABOUT CREDIT REPORTS & CREDIT SCORES Having good

More information

Remember the Interest

Remember the Interest STUDENT MODULE 7.1 BORROWING MONEY PAGE 1 Standard 7: The student will identify the procedures and analyze the responsibilities of borrowing money. Remember the Interest Mom, it is not fair. If Bill can

More information

Do You Know. Your Credit Rights? Federal Reserve Bank of Philadelphia

Do You Know. Your Credit Rights? Federal Reserve Bank of Philadelphia Do You Know Your Credit Rights? Federal Reserve Bank of Philadelphia 1 C redit can play an important role in your daily life. For example, you may use a credit card to make purchases, or you may obtain

More information

Your Credit Report 595 Market Street, 16th Floor, San Francisco, CA

Your Credit Report 595 Market Street, 16th Floor, San Francisco, CA Your Credit Report 750. 670. 620. 575. You may not think about them every day, but your credit report and the three little digits that make up your credit score probably influence your life in many ways.

More information

for Newcomers and New Canadians Module 2 How to Build Credit In Canada Student Workbook

for Newcomers and New Canadians Module 2 How to Build Credit In Canada Student Workbook for Newcomers and New Canadians Module 2 How to Build Credit In Canada Student Workbook Welcome! This workshop is about credit. Credit is buying something now, but paying for it later. Credit can be useful

More information

Buying your first home. Avoiding Financial Frauds. Developed by NJCA 1

Buying your first home. Avoiding Financial Frauds. Developed by NJCA 1 Buying your first home Avoiding Financial Frauds Developed by NJCA 1 Acknowledgment The work that provided the basis for this presentation was supported by funding under a grant with the U.S. Department

More information

Welcome. 1. Agenda. 2. Ground Rules. 3. Introductions. To Your Credit 2

Welcome. 1. Agenda. 2. Ground Rules. 3. Introductions. To Your Credit 2 To Your Credit Welcome 1. Agenda 2. Ground Rules 3. Introductions To Your Credit 2 Objectives Define credit Explain why credit is important Describe the purpose of a credit report and how it is used Order

More information

Why Credit is Important

Why Credit is Important Page 1 Why Credit is Important Page 6 How to Protect Yourself from Identity Theft Page 7 Cosigning and Money Lending Tips Page 8 How to Avoid Credit Card Interest Why Credit is Important Learning to build

More information

Getting Smart about Credit

Getting Smart about Credit Getting Smart about Credit LESSON PREPARATION AND TEACHER INFORMATION Lesson Summary: This lesson is intended for high school students during a 40 minute time period. The lesson teaches students about

More information

Guide to Guarantor Loans

Guide to Guarantor Loans Guide to Guarantor Loans Guide to Guarantor loans Although most people often failed to understand the attraction of payday loans, they did demonstrate a vacuum in the UK as a solution for people with poor

More information

Understanding Vehicle Financing

Understanding Vehicle Financing Understanding Vehicle Financing Understanding Vehicle Financing With prices averaging more than $31,000 for a new vehicle and $17,000 for a used model from a dealership, you might consider financing or

More information

Credit BANKING ON THE FUTURE USCRI. Banking on the Future curriculum, To access the complete USCRI. visit www.refugees.org.

Credit BANKING ON THE FUTURE USCRI. Banking on the Future curriculum, To access the complete USCRI. visit www.refugees.org. To access the complete Banking on the Future curriculum, visit www.refugees.org. You can order your credit report from the following credit reporting agencies: Equifax PO Box 105873 Atlanta, GA 30348 800-685-1111

More information

Credit Abuse Resistance Education

Credit Abuse Resistance Education Credit Abuse Resistance Education (CARE) U S Bankruptcy Court U.S. Bankruptcy Court Southern District of California Are these things you Need or Want? 3 For Big Ticket t Items Unless you ve saved lots

More information

FINANCING 101. The smartest way to finance.

FINANCING 101. The smartest way to finance. FINANCING 101 Vehicle financing can be complicated, but it doesn t have to be. To help you weigh your options, we ve simplified key information about buying, leasing and the basics of financing. The smartest

More information

Home Equity Loans and Credit Lines HELOC

Home Equity Loans and Credit Lines HELOC Home Equity Loans and Credit Lines HELOC If you re thinking about making some home improvements or looking at ways to pay for your child s college education, you may be thinking about tapping into your

More information

Credit: The Good and the Bad

Credit: The Good and the Bad Managing Your Credit Effectively Credit can be a valuable addition to your financial toolbox if you use it carefully and sensibly. Credit means someone is willing to loan you money called Principal in

More information

Mortgage Fraud. Table of Contents. Home Equity Scams Choosing a Loan Home Equity Dos Home Equity Don ts

Mortgage Fraud. Table of Contents. Home Equity Scams Choosing a Loan Home Equity Dos Home Equity Don ts Mortgage Fraud Table of Contents Home Equity Scams Choosing a Loan Home Equity Dos Home Equity Don ts Reverse Mortgages Home Loan Law HOEPA Prevents For more information on Mortgage Fraud visit: You could

More information

Introduction. Purpose. Student Introductions. Agenda and Ground Rules. Objectives

Introduction. Purpose. Student Introductions. Agenda and Ground Rules. Objectives Introduction Instructor and student introductions. Module overview. 1 2 Your name. Student Introductions Your expectations, questions, and concerns about credit. Purpose will: Show you how to read a credit

More information

This page intentionally left blank.

This page intentionally left blank. This page intentionally left blank. 2 Freddie Mac CreditSmart Module 9: Restoring Your Credit Dear Workshop Participant: Welcome to CreditSmart, Freddie Mac s premier financial education curriculum, designed

More information

Use and Misuse of Credit. Chapter 6. Advantages of Credit. What is Consumer Credit?

Use and Misuse of Credit. Chapter 6. Advantages of Credit. What is Consumer Credit? Chapter 6 Use and Misuse of Credit Introduction to Consumer Credit Before you use credit for a major purchase, ask yourself some questions. Do I have the cash for the down payment? Do I want to use my

More information

How to Use Credit. Latino Community Credit Union & Latino Community Development Center

How to Use Credit. Latino Community Credit Union & Latino Community Development Center How to Use Credit Latino Community Credit Union & Latino Community Development Center How to Use Credit Latino Community Credit Union & the Latino Community Development Center www.latinoccu.org Copyright

More information

GL 04/09. How To Improve Your Credit Score

GL 04/09. How To Improve Your Credit Score GL 04/09 How To Improve Your Credit Score Table of Contents 1. What is Credit and What is Debt? 2. The 4 C S of Credit 3. Keeping Score With Your Credit 4. The FICO Score Breakdown 5. How to Rebuild Your

More information

How credit scores affect your mortgage

How credit scores affect your mortgage How credit scores affect your mortgage By Ameen Kamadia, author of How To Make Your Credit Sparkle, available at www.creditsparkle.com Buying a house can be a fun yet daunting task. Most of the anxiety

More information

Credit Reports Credit Scores. Understanding reports and scores Correcting errors Obtaining a free report

Credit Reports Credit Scores. Understanding reports and scores Correcting errors Obtaining a free report Credit Reports Credit Scores Understanding reports and scores Correcting errors Obtaining a free report What goes into your credit report...and who uses it? A A credit report is a summary of your financial

More information

All About Credit Reports from A to Z

All About Credit Reports from A to Z All About Credit Reports from A to Z Adverse Action Notice A notice that you have been denied credit, employment, insurance, or other benefits based on information in a credit report. The notice should

More information

SM4-1: Credit Card Application (version 1)

SM4-1: Credit Card Application (version 1) SM4-1: Credit Card Application (version 1) SM4-1: Credit Card Application (version 1) pg. 1 of 2 SM4-1: Credit Card Application (version 1) continued SM4-1: Credit Card Application (version 1) pg. 2 of

More information

NORTH & EAST LUBBOCK CDC

NORTH & EAST LUBBOCK CDC NORTH & EAST LUBBOCK CDC FINANCIAL LITERACY TRAINING UNIT 3 UNIT 3 UNDERSTANDING CREDIT Instructor: Reggie Dial, NELCDC Program Manager & HUD-Certified Housing Counselor AGENDA Your credit rating Credit

More information

A GUIDE TO AVOIDING FINANCIAL HARDSHIP BY NOT BORROWING TOO MUCH. Consumer Advisory Guide

A GUIDE TO AVOIDING FINANCIAL HARDSHIP BY NOT BORROWING TOO MUCH. Consumer Advisory Guide A GUIDE TO AVOIDING FINANCIAL HARDSHIP BY NOT BORROWING TOO MUCH Consumer Advisory Guide WARNING: Don t take out a Bad Loan When you borrow money you have an obligation to repay the loan in full. If you

More information

Guide to: Credit Repair

Guide to: Credit Repair Guide to: Credit Repair Debt Advisory Services (Scotland) Limited Telephone 08000112322 www.scottishdebthelp.co.uk Contents 1. How Having a Bad Credit Rating Affects You 2. Getting Started 3. Auditing

More information

The Massachusetts Attorney General s. Guide to Consumer Credit

The Massachusetts Attorney General s. Guide to Consumer Credit The Massachusetts Attorney General s Guide to Consumer Credit June 2014 Table of Contents A Note from the Attorney General 3 Truth In Lending 4 Billing Rights 7 Costs of Credit 9 Fair Credit Reporting

More information

GFCU_FusionBookofMoney.qxd 4/15/11 9:47 PM Page 1. Give Yourself Some Credit! A Greylock Federal Credit Union Financial Literacy Guide

GFCU_FusionBookofMoney.qxd 4/15/11 9:47 PM Page 1. Give Yourself Some Credit! A Greylock Federal Credit Union Financial Literacy Guide GFCU_FusionBookofMoney.qxd 4/15/11 9:47 PM Page 1 Give Yourself Some Credit! A Greylock Federal Credit Union Financial Literacy Guide GFCU_FusionBookofMoney.qxd 4/15/11 9:47 PM Page 2 Contents How Does

More information

PRACTICAL MONEY GUIDES CREDIT HISTORY. Your credit history and how it affects your future

PRACTICAL MONEY GUIDES CREDIT HISTORY. Your credit history and how it affects your future PRACTICAL MONEY GUIDES CREDIT HISTORY Your credit history and how it affects your future YOUR CREDIT HISTORY THE RECORD OF HOW WELL YOU HANDLE CREDIT To get a glimpse of your financial future, many businesses

More information

Credit Report Info Packet

Credit Report Info Packet Credit Report Info Packet Information in this Packet What Is a Credit Report?.....................3 What Is a Credit Score?..................... 4 Who Can See Your Credit Report?.............. 5 Ordering

More information

JUST BEGINNING. Your financial life is. I m Buying a Car!

JUST BEGINNING. Your financial life is. I m Buying a Car! Your financial life is JUST BEGINNING. The decisions you make now will put a steering wheel and a credit card in your hands. But they will also affect your financial future. Your choices may even prevent

More information

Credit Scoring and Wealth

Credit Scoring and Wealth the Problem In most games, it is wise to understand the rules before you begin to play. What if you weren t aware that you were playing a game? What if you had not choice whether to play or not? Everyone

More information

Keys to Your Financial Future

Keys to Your Financial Future Section 1: Name: Date: Section 2: Circle your answer to each of the following questions. 1. Vision and goals have hing to do with managing your money. 2. Contingency planning is thinking about what could

More information

This page intentionally left blank.

This page intentionally left blank. This page intentionally left blank. 2 2013 Freddie Mac CreditSmart Instructor s Guide Module 9: Restoring Your Credit This page intentionally left blank. 3 2013 Freddie Mac CreditSmart Instructor s Guide

More information

Chapter 06. What is Consumer Credit? Chapter 6 Learning Objectives. Introduction to Consumer Credit

Chapter 06. What is Consumer Credit? Chapter 6 Learning Objectives. Introduction to Consumer Credit Chapter 06 Introduction to Consumer Credit McGraw-Hill/Irwin Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved. 6-1 Chapter 6 Learning Objectives 1. Define consumer credit and analyze

More information

IBM Southeast Employees Federal Credit Union CREDIT 101 WELCOME!

IBM Southeast Employees Federal Credit Union CREDIT 101 WELCOME! IBM Southeast Employees Federal Credit Union CREDIT 101 WELCOME! Credit reports Credit scores Behaviors impact score Financial health Tips CREDIT REPORTING AGENCIES Experian, Equifax and TransUnion How

More information

IMPORTANCE OF CREDIT HISTORY AND SUCCESSFUL SAVING

IMPORTANCE OF CREDIT HISTORY AND SUCCESSFUL SAVING IMPORTANCE OF CREDIT HISTORY AND SUCCESSFUL SAVING From America Saves and Experian WHAT IS A CREDIT REPORT AND SCORE? A credit score is a three digit number that measures how likely you are to repay a

More information

Understanding Credit

Understanding Credit Understanding Credit Topics covered: Establishing Credit Credit Scores Repairing Credit Why is credit necessary? Applying for a loan Applying for a credit card Applying for a mortgage Renting an apartment/house

More information

THEME TWO: SIGNIFICANCE OF LEARNING, EARNING AND SPENDING ON PERSONAL FINANCIAL WELL-BEING

THEME TWO: SIGNIFICANCE OF LEARNING, EARNING AND SPENDING ON PERSONAL FINANCIAL WELL-BEING THEME TWO: SIGNIFICANCE OF LEARNING, EARNING AND SPENDING ON PERSONAL FINANCIAL WELL-BEING LESSON TITLE: Theme 2, Lesson 2: Credit: Friend or Foe? Lesson Description: This lesson will help students evaluate

More information

Understanding. What you need to know about the most widely used credit scores

Understanding. What you need to know about the most widely used credit scores Understanding What you need to know about the most widely used credit scores 300 850 2 The score lenders use. FICO Scores are the most widely used credit scores according to a recent CEB TowerGroup analyst

More information

Your Credit Score. 800-491-2328 www.congressionalfcu.org. score of at least 620 for approval and 760 for the best interest rate.

Your Credit Score. 800-491-2328 www.congressionalfcu.org. score of at least 620 for approval and 760 for the best interest rate. 800-491-2328 www.congressionalfcu.org Your Credit Score Your credit score can have a major impact on your life. Not only do creditors typically check your score when deciding whether or not to approve

More information

Questions & Answers About. Subprime Lending. Save Money. Get Help. Avoid Rip-Offs. A Consumer Action Publication

Questions & Answers About. Subprime Lending. Save Money. Get Help. Avoid Rip-Offs. A Consumer Action Publication Questions & Answers About Subprime Lending Save Money Get Help Avoid Rip-Offs A Consumer Action Publication Contents 2 Poor credit means higher interest rates 3 Subprime credit 4 Credit scoring 4 Predatory

More information

Six Ways to Increase Wealth Laura Connerly, Ph.D., Assistant Professor Family and Consumer Economics

Six Ways to Increase Wealth Laura Connerly, Ph.D., Assistant Professor Family and Consumer Economics DIVISION OF AGRICULTURE R E S E A R C H & E X T E N S I O N University of Arkansas System United States Department of Agriculture, University of Arkansas, and County Governments Cooperating Introduction

More information

Credit Score and Report Overview

Credit Score and Report Overview Credit Score and Report Overview Have you ever wondered how your credit score is calculated? Have you ever asked, but are always given vague answers? I will tell you exactly how credit scores are determined

More information

lesson seven about credit overheads

lesson seven about credit overheads lesson seven about credit overheads advantages and disadvantages of using credit advantages: Able to buy needed items now Don t have to carry cash Creates a record of purchases More convenient than writing

More information

Understanding Credit Personal Management Merit Badge

Understanding Credit Personal Management Merit Badge Understanding Credit Personal Management Merit Badge Kelsey Balcaitis Youth Financial Education Coordinator Class Rules Leave No Trace Wear your uniform to class A Scout is Trustworthy, Loyal, Helpful,

More information

FINANCING 101234 567890 123456

FINANCING 101234 567890 123456 FINANCING 101234 567890 123456 FINANCING 101 With a typical Hyundai Finance lease, you re covered for normal wear and use without having to pay additional charges at the end of the term. And while it s

More information

February Office of Student Financial Management. Kasia Palm: Director of Student Financial Management

February Office of Student Financial Management. Kasia Palm: Director of Student Financial Management February 2016 Office of Student Financial Management Kasia Palm: Director of Student Financial Management What is Credit? The ability to obtain goods/services before payment based on the trust that a payment

More information

Know Your Score A Clear Guide

Know Your Score A Clear Guide Know Your Score A Clear Guide Contents Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Understanding Credit What is a Credit Report? What is a Credit Score? About ClearScore Examples 1 Chapter 1 Understanding

More information

Understanding Your Credit Report

Understanding Your Credit Report Understanding Your Credit Report What is credit? Credit is the use of someone else s money in exchange for a promise to pay it back on a given date. There are two major types of credit: Revolving and Installment.

More information

Establishing and Managing Credit

Establishing and Managing Credit Establishing and Managing Credit Section Objectives Using credit wisely is an important part of the financial management process and establishing your financial security. Credit allows you to buy now and

More information

MANAGING CREDIT101 i

MANAGING CREDIT101 i MANAGING CREDIT101 i This book is intended as a general guide to the topics discussed, and it does not deliver accounting, personal finance, or legal advice. It is not intended, and should not be used,

More information

Your rights as a borrower

Your rights as a borrower Your rights as a borrower A guide from the Better Business Bureau Protecting your home and the American dream What you need to know about predatory lending Commercials and door-to-door representatives

More information

About Credit. Financial Literacy

About Credit. Financial Literacy About Credit Financial Literacy What is Credit? Credit is the ability to borrow money with a promise of future payment. Why borrow? Goals - car, appliances, furniture, etc Home Education Health Plan your

More information

Solving the Credit Puzzle. L G & W Federal Credit Union

Solving the Credit Puzzle. L G & W Federal Credit Union Solving the Credit Puzzle L G & W Federal Credit Union Knowledge Check How much do you already know about credit scoring? Sample Credit Report Credit Bureaus Equifax TransUnion Experian Who Can Pull Your

More information

Borrowing Money for Your Business

Borrowing Money for Your Business Borrowing Money for Your Business After you have developed a cash flow analysis and determined when your business will make profit, you may decide you need additional funding. Borrowing money is one of

More information