3-1 Intro to Consumer Credit

Define Credit.

• When you pay for something you purchase that day

• When you purchase something and don't pay for it right away

Define Creditor.

• Organizations or individuals that extend credit to consumers

• Someone sneaky that ruins your credit

Define Assets

• Everything you own. Car, house, etc..

• The people in your life

Define Earning Power

• The amount of money you make in a year

• Your ability to earn money now and in the future

What is Credit Rating?

• A count of the amount of credit cards you have

• Your credit "report card"

The FICO scale ranges from

• 300 to 850

• 79 to 900

Define Installment Plan

• Paying for something over a period of time

• The plan to install something new

Define Down Payment

• Your last monthly payment

• The part of selling price paid at the time of purchase

Define Interest

• The fee charged for entering an installment plan

• The original asking price for a product

Define Finance Charge

• The cost of a product before an installment plan

• Another name for interest. (The extra amount you paid)