Friday, February 22, 2013

Economics: Defining your credit

#1- Define the following terms:

  • credit profile
  • credit report
  • credit score or FICO score
  • interest
  • types of loans (open-ended loans, closed-ended loans, secured loans, unsecured loans, conventional loans, advance or payday loans loans, advance fee loans)
  • insurance
  • low risk vs. high risk borrower
  • types of bank accounts (savings, basic checking, interest bearing checking, money market deposit accounts, certificates of deposit)
  • Five C's of credit lending (see handout, then list and summarize)
Resources for definitions:
Bank Accounts
FICO score
Credit Report
How credit works
Credit 101

#2- Complete the charts..."Benefits and Risks of Credit" and "Good vs. Bad credit"

Benefits & Risks
Bad credit vs. No credit
Good vs. Bad Credit

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