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Details Title: Personal Finance Credit Description: Credit Test Total Flash Cards: 7 Created: 05/12/2006 07:50:28	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term 3 advantages of credit Definition Provide emergency funds, convienient shopping, safe shopping Term 3 disadvantages of credit Definition Reduces compartive shopping, sometimes costs more than cash, may lead to over consumption (debt) Term 5 c's of credit Definition Character, capital, capacity, conditions, collateral Term 5 Components of Credit Score Definition Payment history 35% Outstanding Debt 30% Length of time have 15% Number of inquiries 10% Types of credit have 10% Term What is liability Definition none, $50 if after illegal use Term 3 Ways to improve score: Definition Don't close old credit card accounts just because you're not using them, Pay bills on time, don't open new credit card accounts just to increase Term Advantages/disadvantages Definition Debts erased, Certain incomes unaffected (social security), cost is small damaged credit, propety lost, some obligations remain (income, student loan)