Forms of Credit (Leaving Cert Home Economics): Flashcards
📚Flashcards
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Practise the cards
15 cards from this deck
Store cards vs standard credit cards: interest rates
Store cards vs standard credit cards: interest rates
Store cards have higher interest rates
Store card benefits
Store card benefits
Interest-free periods & loyalty points/rewards
Credit card type of credit
Credit card type of credit
Revolving credit
Overdraft definition
Overdraft definition
Spend more than account balance up to pre-arranged limit
Term loan key features
Term loan key features
Set period, predictable monthly payments, clear end date
Charge card payment requirement
Charge card payment requirement
Full balance must be paid each month
Charge cards: interest charges
Charge cards: interest charges
No interest charges
Hire purchase: when do you own the item?
Hire purchase: when do you own the item?
After all payments are completed
Hire purchase: risk of missing payments
Hire purchase: risk of missing payments
Repossession of the item
Interest rate definition
Interest rate definition
Percentage charged on borrowed amount
Examples of hidden credit fees
Examples of hidden credit fees
Origination fees, late payment penalties, annual fees
Credit advantage: credit history
Credit advantage: credit history
Builds positive credit history for future loans
Credit advantage: protection
Credit advantage: protection
Dispute resolution & fraud protection
Credit disadvantage: debt
Credit disadvantage: debt
Risk of overspending and unmanageable debt accumulation
Missing credit payments: impact
Missing credit payments: impact
Damages credit score, late fees, increased interest rates