Personal Finance Study Question 5

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Lesson 1 1. What is credit? 2. What is a credit score? 3. What is installment credit? 4. What is revolving credit? 5. What is noninstallment credit? 6. Name at least one section of a credit report. Lesson 2 1. Name at least one of the steps in establishing credit. 2. Name at least one alternate option to establishing credit if you are unable to get a credit card yet. 3. What is debt services default? 4. What is the Better Business Bureau? 5. What is a debt settlement program? 6. What is bankruptcy? Lesson 3 1. What is an annual percentage rate? 2. What is an annual percentage yield? 3. Name at least one advantage of credit cards. 4. Name at least one disadvantage of credit cards. 5. If you take out a $1,000 loan for college at 7% interest, what is the principal? 6. What is a loan? Lesson 1 1. The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future. 2. A credit score is a numerical expression based on a level analysis of a person's credit files, to represent the creditworthiness of that person 3. Installment credit is a type of credit that has a fixed number of payments, in contrast to revolving credit 4. .credit that is automatically renewed as debts are paid off 5. Non-installment credit refer to a system of credit that is payable in one lump-sum amount by a specified date. Non installment credit is the simplest form of credit 6. Noninstallment Lesson 2 1.) One of the steps in establishing credit is opening a bank account. 2.) Department store or gas cards. 3.) It is the failure to make a payment. 4.) It is an organization that reports on the reliability and ethics of companies and other organizations. 5.) They are programs that

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