PF@E Unit 6 Credit and Insurance,

Front

What is Installment credit and provide an example?

Back

A type of credit that is paid off in regular installments over time.

Front

What is Revolving credit and provide an example?

Back

A type of credit that allows you to borrow up to a certain limit and pay back over time, like a credit card.

Front

What is the key difference between revolving credit and installment credit?

Back

Revolving credit allows you to borrow up to a certain limit and pay it back over time, while installment credit involves borrowing a fixed amount and repaying it in regular installments.

Front

Bankruptcy is a legal process involving what?

Back

Reorganization of a debtor's obligations

Front

The leading cause of bankruptcies is: Medical expenses, Credit card debt, Student loans, Gambling losses

Back

Medical expenses

Front

Declaring bankruptcy impacts a person’s credit score by:

Back

Lowering it significantly

Front

What are the long term effects of a bankruptcy?

Back

Difficulty in obtaining credit

Front

What does Premium refer to within the Insurance Industry?

Back

The amount paid periodically to the insurer by the insured for covering their risk.

Front

Insurability refers to what within the Insurance Industry?

Back

The ability to obtain insurance coverage

Front

What are the main rate factors within the Insurance Industry?

Back

Age, location, and driving record