CREDIT+AND+PERSONAL+LOANS

= Credit and Personal Loan = Key Terms

5. Bankruptcy- when cards provide protection for a person who is unable to pay off his or her debts.
6.Personal Loans- A type of credit that is typically started at the time of purchase for a specific asset (car, motorcycle, boat, etc...) 7.Down payment- A buyer pays a portion of the purchase price with his or her own money 8. percentage rate- factors in all the costs of financing so that borrowers can make informed decisions 9.Secured loan- asset pledged against the loan, so that the lander is assured of winding up with some valuable asset = ﻿Pay Lending = With payday lending, a lender provides cash advances at a high cost to customers who provide a check dates for some time in the future. = ﻿Tax Refund Loans = When people use the services of a tax pro, they **//may//** offer an instant refund based on the calculated income tax refund.

> However, there are key differences between a credit card and a loan that will affect which is more suited to your needs. A credit card is more flexible in terms of repayments, but this can lead to the temptation to repay the debt slowly which could cost you more in the long run.
 * There are [|different types of credit] available for different purposes. [|Credit cards] are typically most suitable for short-term borrowing, but in recent years a lot of deals have emerged that offer a real alternative to longer-term forms of credit such as a [|personal loan].

People who want to get credit cards they have to go see a credit provider such as a bank. The bank agrees to make a certain amount of credit available to the card holder. You can continue to use the card until reaching the credit limit. If you use credit cards you can get lower prices on gasoline, clothes, air travel, and groceries. Applying for a credit card is much like applying for a loan or other form of credit. It is also good thing to build up some credit history. That means buying things and paying the bill on time.


 * Home owners and rental insurance**


 * Homeowners insurance produces protection for your house
 * Tornado, fire, theft, ect.
 * You can add additional coverages (policy riders)
 * Loans**
 * Student loans are a type of personal loan
 * Federal Stafford loans are a type of common federal education loan
 * Federal Perkins loans are for students with exceptional financial needs
 * Parents also have the ability to borrow from many sources to finance college education
 * Financing your car**
 * New car loans run 3-6 years
 * Used cars are a better option
 * Leasing is essentially a long term rental agreement each month you pay a lease payment
 * One advantage is you only pay a small amount, but you dont own the car
 * Some have milage limits
 * Maintain adequate insurance
 * Liability Coverage- Auto insurance can cover you against any damage