Financial Management

What is credit?

• Trust from a creditor/lender that you will repay the funds borrowed.

• A small plastic card that allows you pay for something without using cash.

• Risk associated with borrowing money.

• Interest on good purchased.

What are the five C's of credit?

• Capacity, Coloring, Clearing, Creativeness, Coneheads

• Capacity, Collection, Collateral, Common Sense, Capital

• Capacity, Clearance, Collateral, Character, Capital

• Capacity, Conditions, Collateral, Character, Capital

How do you maintain good credit?

• Manage your debt, pay your bills on time, establish a good credit history, have a low debt to income ratio.

• Get as many credit cards as you can and max them out.

• Check your credit report regularly.

• Don't get any credit cards.

All of the following are primary sources of income except?

• Employment paycheck

• Tips

• Interest

• Loans

What is a credit score?

• a small plastic card that lets you make a purchase without cash.

• how much money you make compared to how much money you owe?

• a number that helps a lender predict how likely an individual is to repay a loan.

What does ARM stand for?

• An appendage from your torso with a hand and elbow.

• Adjustable rate mortgage.

• Adjustable rate money.

• Adjustable ratio mortgage.

What are the six things you should do to establish and maintain good credit.

• Never pay on time, get lots of credit cards, increase your debt to income ratio, get rid of savings accounts, check your credit report, pay off debt

• Pay off debt, check your credit score, read your credit report, don't fix mistakes on it, pay your debts on time, only get a few credit cards.

• Pay on time, check your credit score, get lots of credit cards, open a savings account, check your credit report, pay off debt.

• Pay bills on time, Avoid late fees, Check your credit report, Pay off debt, Correct mistakes, Get current and stay current.

How do you know when abusive lending is taking place?

• when the lender is pressuring you to take a loan.

• when you have done your "due diligence" and the loan office does not badger you to sign for the loan.

What are 3 warning signs of debt problems?

• delinquent payments

• default notices

• collection agencies.

• paying your bills on time.

What are some additional warning signs of debt problems?

• Garnishments

• Judgment lien

• Avoiding late fees

• Collection agencies

• Repossessions