Financial Literacy: Credit & Loans Directions Fill in the blanks. - MOCA Protecting Yourself in the Credit World SOX IWWE mm 1. When you use a credit card, even if you stay within your credit limit and pay promptly, you can still encounter problems, either by charges showing up on your account you did not make, have your and a thief use your card, or by having problems with a with whom you have tried to do business 2. It is best to give the the opportunity to fix the problem before you contact the credit card company to put a hold on the payment to the merchant until all problems can be resolved 3. If you can not get your dispute cleared up with a merchant, or if the error on your statement is in your opinion, caused by the credit card company, you have up to from the date of the transaction to contact the credit card company or lender about the possible error. 4. The most you will be liable for is of charges someone else makes on your account 5. If you are no longer using a credit card, you should cancel it so the credit limit available to you through this particular credit card company does not affect your 6. Keep your in a safe place and never write it on your card. 7. Each month, verify your and purchases on your credit card statement Credit Histories, Scores, and Bureaus 8. There are three national credit bureaus: Equifax, Experian and 9. Individuals are allowed to get a copy of their own credit report for free a year from each of these national credit bureaus. ccompanies: Financial Literacy: Credit & Loans Financial Literacy: Credit & Loans -ZMOCG 10. More and more financial institutions are basing their decision to lend and to extend credit to an individual solely based on their credit score and their 11. There are two major components which make up your credit history information and public records mm IDOS 12. Consumer credit information comes from merchants, credit card companies and other such has banks, who report how you handle your account you have with each. 13. Public records which are kept on your credit history include information, such as if you filed for experienced a foreclosure on your home, have had a tax lien placed on your assets by the federal, state or local government, and by court judgments. 14. While it is not your responsibility to report any of this information to the credit bureaus, it is your responsibility to keep a watch on your report and correct any which may come up. 15. Your credit score is a number between 525 and or 810. The higher the number, the better the credit. The higher the number, sometimes the lower the rate you may pay. 16. There are main criteria credit bureaus use to determine your credit rating or score. 17. These five criteria are: including if you pay on time or if you late pay; the total amount you owe to all lenders and creditors; the length of your credit history how much new credit you've acquired in the most recent time period; and what types of credit that you used. 8. More and more institutions are using a credit report to really look at someone's Financial Literacy: Credit & Loans Dealing with Debt 19. It is very easy to get in trouble if you do not have a financial plan, if you do a not have on how to manage your financial affairs. 20. There are, however, actions you can control, but if you do not, they will get very quickly you into 21. They are spending than you make on a month-to-month basis, making purchases on credit you know you cannot afford, or not paying your balances in 22. Lenders could your property leaving you without, for Instance, a vehicle to drive to work, your credit score will most likely significantly and the court system may take over your finances and garnish your wages to pay back the lenders who are trying to get their money from you for the debt you owe them 23. In addition to these very real consequences, you could also suffer because of the stress the debt brings into your own life. 24. Start by contacting your the people who loaned you the money in the first place, and talk to them about your situation. 25. If you still need help. try a nonprofit service. These services can help you get your information organized so you know exactly what you owe and to whom you owe it. 26. No one but can fix your credit 27. There are also loan consolidators who will loan you money to pay off all of your credit cards and put them into because 28. This normally saves you a lot in you are only paying interest on one loan at a more decentrate than to multiple credit card companies who are most likely charging you an even higher rate of interest. 29. Another example is after you have tried all of these ways to get out debt. you still cannot find a way, so you file for Financial Literacy: Credit & Loans 30. In bankruptcy proceedings, you file a with federal or state court telling them you do not have a way to pay your debts. The court then helps you to work out a with your creditors. Types of Loans 31. are normally used for various types of big ticket purchases individuals routinely make MIX ZOE 32. The difference between a bank or installment loan and a credit card payment is the installment loan is a for a specific amount, and you are going to pay it over however many years and the is also fixed, whether it be two years or five years. 33. The is the actual amount of money you borrowed from the lender for your purchase. 34. Examples of loans most individuals will get at some point in their life are car loans, house loans, college education loans and loans. just to name a few. 35. You will pay back the principal amount you borrowed, plus you will pay back the as well 36. The interest rate can be or it can be adjustable 37 A fixed rate means the interest rate set at the time you take out the loan will be the interest rate you pay throughout the term of the loan 38. An adjustable rate may during the term of the loan. the loan is set up for you to 39. The term is the pay it back 40. When you put up collateral for a loan, it is said to be a 41. is an asset, usually what is being purchased, which the bank owns the rights to until the loan is paid in full Accompanies: Financial Literacy Credit & Loans Financial Literacy: Credit & Loans 42. An unsecured loan is one where the money is loaned to an individual simply on their reputation, sometimes called a because all the bank has is the individual's signature on the loan document agreeing to pay back the loan plus interest. Vouz 43. With a borrowed you get the principal of the loan you 2OXIw 44. This type of loan allows you to borrow money, similar to how you would use a You have a set limit of money you can borrow at any one time and you pay interest only on the amount you have borrowed The Loan Process 45. When you go in to see the lender, you will want to know the following things so you can share them in an organized, neat manner the purpose of the loan, how much you want to borrow, for the amount you want to borrow, how you plan on paying the money back, and how much you can afford to pay each month The Cost of Loans 46. When you take out a loan from a lender, there are three ways the loan will cost you money: the you pay, the interest rate you will pay and the of the note, which determines how many payments you will make 47. There are you may pay when you take out a loan: application fee, credit history fee and attorney fee. 48. An application fee may be a of the loan, or it may be a 49. This credit check will provide them with your and credit rating which will help them decide if they want to loan the money to you Financial Literacy: Credit & Loans 50. The lender has to pay the credit agencies for this report, so the lender will then charge you a fee to cover their ZMOCO 51. Whenever a legal document is written and all loan documents are considered to be between you and the lender - attorneys have been, or are currently involved in the writing of this contract. The will pass this cost on to you -mm IDOS 52. The interest rate is essentially determined based on the of the borrower. 53. We also look at how much they make relative to how much they are obligated for. That is called a ratio 54. The higher the debt-to-income ratio, the more and the the rate is going to be. 55. The term of your loan plays an important role in calculating the of your loan 56. Sometimes you have to go with a term to get the payments where you can them. Financial Literacy: Credit & Loans Directions Fill in the blanks. - MOCA Protecting Yourself in the Credit World SOX IWWE mm 1. When you use a credit card, even if you stay within your credit limit and pay promptly, you can still encounter problems, either by charges showing up on your account you did not make, have your and a thief use your card, or by having problems with a with whom you have tried to do business 2. It is best to give the the opportunity to fix the problem before you contact the credit card company to put a hold on the payment to the merchant until all problems can be resolved 3. If you can not get your dispute cleared up with a merchant, or if the error on your statement is in your opinion, caused by the credit card company, you have up to from the date of the transaction to contact the credit card company or lender about the possible error. 4. The most you will be liable for is of charges someone else makes on your account 5. If you are no longer using a credit card, you should cancel it so the credit limit available to you through this particular credit card company does not affect your 6. Keep your in a safe place and never write it on your card. 7. Each month, verify your and purchases on your credit card statement Credit Histories, Scores, and Bureaus 8. There are three national credit bureaus: Equifax, Experian and 9. Individuals are allowed to get a copy of their own credit report for free a year from each of these national credit bureaus. ccompanies: Financial Literacy: Credit & Loans Financial Literacy: Credit & Loans -ZMOCG 10. More and more financial institutions are basing their decision to lend and to extend credit to an individual solely based on their credit score and their 11. There are two major components which make up your credit history information and public records mm IDOS 12. Consumer credit information comes from merchants, credit card companies and other such has banks, who report how you handle your account you have with each. 13. Public records which are kept on your credit history include information, such as if you filed for experienced a foreclosure on your home, have had a tax lien placed on your assets by the federal, state or local government, and by court judgments. 14. While it is not your responsibility to report any of this information to the credit bureaus, it is your responsibility to keep a watch on your report and correct any which may come up. 15. Your credit score is a number between 525 and or 810. The higher the number, the better the credit. The higher the number, sometimes the lower the rate you may pay. 16. There are main criteria credit bureaus use to determine your credit rating or score. 17. These five criteria are: including if you pay on time or if you late pay; the total amount you owe to all lenders and creditors; the length of your credit history how much new credit you've acquired in the most recent time period; and what types of credit that you used. 8. More and more institutions are using a credit report to really look at someone's Financial Literacy: Credit & Loans Dealing with Debt 19. It is very easy to get in trouble if you do not have a financial plan, if you do a not have on how to manage your financial affairs. 20. There are, however, actions you can control, but if you do not, they will get very quickly you into 21. They are spending than you make on a month-to-month basis, making purchases on credit you know you cannot afford, or not paying your balances in 22. Lenders could your property leaving you without, for Instance, a vehicle to drive to work, your credit score will most likely significantly and the court system may take over your finances and garnish your wages to pay back the lenders who are trying to get their money from you for the debt you owe them 23. In addition to these very real consequences, you could also suffer because of the stress the debt brings into your own life. 24. Start by contacting your the people who loaned you the money in the first place, and talk to them about your situation. 25. If you still need help. try a nonprofit service. These services can help you get your information organized so you know exactly what you owe and to whom you owe it. 26. No one but can fix your credit 27. There are also loan consolidators who will loan you money to pay off all of your credit cards and put them into because 28. This normally saves you a lot in you are only paying interest on one loan at a more decentrate than to multiple credit card companies who are most likely charging you an even higher rate of interest. 29. Another example is after you have tried all of these ways to get out debt. you still cannot find a way, so you file for Financial Literacy: Credit & Loans 30. In bankruptcy proceedings, you file a with federal or state court telling them you do not have a way to pay your debts. The court then helps you to work out a with your creditors. Types of Loans 31. are normally used for various types of big ticket purchases individuals routinely make MIX ZOE 32. The difference between a bank or installment loan and a credit card payment is the installment loan is a for a specific amount, and you are going to pay it over however many years and the is also fixed, whether it be two years or five years. 33. The is the actual amount of money you borrowed from the lender for your purchase. 34. Examples of loans most individuals will get at some point in their life are car loans, house loans, college education loans and loans. just to name a few. 35. You will pay back the principal amount you borrowed, plus you will pay back the as well 36. The interest rate can be or it can be adjustable 37 A fixed rate means the interest rate set at the time you take out the loan will be the interest rate you pay throughout the term of the loan 38. An adjustable rate may during the term of the loan. the loan is set up for you to 39. The term is the pay it back 40. When you put up collateral for a loan, it is said to be a 41. is an asset, usually what is being purchased, which the bank owns the rights to until the loan is paid in full Accompanies: Financial Literacy Credit & Loans Financial Literacy: Credit & Loans 42. An unsecured loan is one where the money is loaned to an individual simply on their reputation, sometimes called a because all the bank has is the individual's signature on the loan document agreeing to pay back the loan plus interest. Vouz 43. With a borrowed you get the principal of the loan you 2OXIw 44. This type of loan allows you to borrow money, similar to how you would use a You have a set limit of money you can borrow at any one time and you pay interest only on the amount you have borrowed The Loan Process 45. When you go in to see the lender, you will want to know the following things so you can share them in an organized, neat manner the purpose of the loan, how much you want to borrow, for the amount you want to borrow, how you plan on paying the money back, and how much you can afford to pay each month The Cost of Loans 46. When you take out a loan from a lender, there are three ways the loan will cost you money: the you pay, the interest rate you will pay and the of the note, which determines how many payments you will make 47. There are you may pay when you take out a loan: application fee, credit history fee and attorney fee. 48. An application fee may be a of the loan, or it may be a 49. This credit check will provide them with your and credit rating which will help them decide if they want to loan the money to you Financial Literacy: Credit & Loans 50. The lender has to pay the credit agencies for this report, so the lender will then charge you a fee to cover their ZMOCO 51. Whenever a legal document is written and all loan documents are considered to be between you and the lender - attorneys have been, or are currently involved in the writing of this contract. The will pass this cost on to you -mm IDOS 52. The interest rate is essentially determined based on the of the borrower. 53. We also look at how much they make relative to how much they are obligated for. That is called a ratio 54. The higher the debt-to-income ratio, the more and the the rate is going to be. 55. The term of your loan plays an important role in calculating the of your loan 56. Sometimes you have to go with a term to get the payments where you can them