Learning your credit and checking account A B Cs
- Jeff Hulett
- Sep 26, 2023
- 1 min read
Updated: Oct 5, 2023
For James Madison University BUS 200 Personal Finance class.
Watch the following videos and answer the questions below the videos.
1. What is Credit? The Basics of Credit
1. What is credit?
2. What is revolving credit?
3. What is a credit score?
4. What is a secured loan?
5. What is a credit limit?
6. What is a cosigner?
7. What is a credit report?
8. Why is credit important?
2. What is a credit card?
1. Discuss the costs and benefits of using credit cards.
2. How do you get a credit card?
3. What happens when you use a credit card?
4. Identify and explain three items on your monthly credit card statement.
5. All credit cards charge interest. What can you do to reduce the costs of paying interest?
6. What factors should you consider when selecting a credit card?
3. Checking Accounts
1: What is the primary purpose of a checking account?
2: What identifies your bank for electronic transfers?
3: How does money enter your checking account?
4: What happens during the 'clearing' process?
5: What is an overdraft?
6: What is a debit card used for?
7: What is the main difference between a checking account and a savings account?
8: What is 'settlement' in the context of a checking account?
9: What does overdraft protection do?
10: How has digital banking impacted checking accounts?
1. What is credit?
The ability to borrow money or receive money with the promise to repay the bank.
2. What is revolving credit?
A credit line, such as a credit card, that you can use, repay, and reuse
3. What is a credit score?
A measure of how well you use your credit card based on your history.
4. What is a secured loan?
A loan backed by collateral that the lender can take if you fail to pay.
5. What is a credit limit?
How much are you allowed to borrow in a month.
6. What is a cosigner?
A person who pays your loan if you fail to pay.
7. What…
Credit:
1. What is credit?
Ability to borrow money or buy goods and services with the understanding that you will pay later.
2. What is revolving credit?
It allows you to buy up to a certain limit and pay off that limit over time. A credit card is an example.
3. What is a credit score?
A rating that shows how trustworthy you are at borrowing and repaying.
4. What is a secured loan?
A loan backed by collateral that the lender can take if you fail to repay the loan.
5. What is a credit limit?
The maximum amount of money that a lender allows you to borrow.
6. What is a cosigner?
Someone who assumes responsibility to repay…
Basics of Credit
What is credit? Credit is the ability to borrow money now with the agreement that you will repay it later
What is revolving credit? Revolving credit lets you borrow up to a set limit and repay the balance gradually over time as you make payments
What is a credit score? A credit score is a number that shows how reliable you are at repaying debt. Lenders use it to decide whether to approve loans and what interest rates to offer
What is a secured loan? A secured loan is a loan that requires collateral such as a car and If you don’t repay it, the lender can take the collateral
What is a credit limit? A credit…
What is credit
1. What is credit?
The ability to borrow money or obtain goods and services with the understanding that payment will be made later
2. What is revolving credit?
You can borrow up to a specified limit and repay the debt over time
3. What is a credit score?
A number that shows how likely you are to pay off the money that you borrow
4. What is a secured loan?
A loan that requires collateral like a deposit or an asset in order to guarantee credit
5. What is a credit limit?
The maximum amount of money that you are able to borrow in a given period
6. What is a cosigner?
Someone that signs along with…
Credit- The ability to borrow money or obtain goods, understanding the payment is made later.
Revolving Credit- A type of credit that lets you borrow up to specified limit and repay overtime (credit cards)
Credit Score- A number calculated through previous credit usage and gives an estimate on the likelihood/ability to pay back credit
Secured Loan- A type of loan that incorporates collateral to add assurance to the credit issuer
Credit Limit- a maximum allowable amount that you are able to take on credit before paying any of it back
Cosigner- Another individual who may agree to collaborate with you to ensure credit repayments (often if an individual's credit score is poor)
Credit Report- a record of a personal credit…