Reading: Credit Management
What
is Credit?
•Credit
– when goods, services or money is received in exchange for a promise to pay a
definite sum of money at a future date.
•Why
would a person want to use credit?
Obtaining Credit
Why would a lender assess a borrower’s creditworthiness before granting credit?
Paying
Back Credit
Why would a lender charge a borrower interest?
Closed-end
vs Open-end Credit
What
Type of Lending Do Financial Institutions Provide?
•Closed-ended
Credit
-Mortgage
15 Yr or 30 Yr
15 Yr or 30 Yr
-Home
Equity Loan
-Car
Loan
3, 5, 6 Yr
3, 5, 6 Yr
-Student
Loan
•Service
Credit
- Cell, cable, internet
- Utilities
- Cell, cable, internet
- Utilities
•Open-ended
Credit
- Line of Credit: a pre-established amount that can be borrowed on demand with no collateral from your bank.
- Bank Credit Card
Visa, Mastercard, Discover
- Retail Credit Card
Macy’s, American Eagle, Best Buy
- Line of Credit: a pre-established amount that can be borrowed on demand with no collateral from your bank.
- Bank Credit Card
Visa, Mastercard, Discover
- Retail Credit Card
Macy’s, American Eagle, Best Buy
What
Type of Lending Do Financial Institutions Provide?
•Closed-ended
Credit
-Mortgage
15 Yr or 30 Yr
15 Yr or 30 Yr
-Home
Equity Loan
-Car
Loan
3, 5, 6 Yr
3, 5, 6 Yr
-Student
Loan
•Service
Credit
- Cell, cable, internet
- Utilities
- Cell, cable, internet
- Utilities
•Open-ended
Credit
- Line of Credit: a pre-established amount that can be borrowed on demand with no collateral from your bank.
- Bank Credit Card
Visa, Mastercard, Discover
- Line of Credit: a pre-established amount that can be borrowed on demand with no collateral from your bank.
- Bank Credit Card
Visa, Mastercard, Discover
- Retail Credit Card
Macy’s, American Eagle, Best Buy
What
is a Credit Card
Modifié le: mardi 14 août 2018, 08:30