6+Credit

=Contracts =

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==

=Getting Started With Credit =

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= = = = =How to Choose (and Use) a Credit Card = media type="custom" key="22382190"

Mr K does NOT want this card!


**Should Mr K go for the** ** Vikings Extra Points ** **Visa Card?**

Credit Card Guide
 * Where to Find Credit Card Choices**

You may have to click on an "Apply For This Card" button, then look for a link that says "Terms and Conditions"



Pawnshops 101
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Typical Pawn Shop Charges:
$10 setup fee + 3% (per month) storage fee + 36% APR

Key to understanding how much these loans cost a consumer is to understand how to calculate the APR of the loan.

Use this formula: R = I / P x T

=Payday Loans =



A payday loan – which might also be called a “cash advance” or “check loan” – is a short-term loan, generally for $500 or less, that is typically due on your next payday.

Payday loans generally have three features:
 * The loans are for small amounts.
 * The loans typically come due your next payday.
 * You must give lenders access to your checking account or write a check for the full balance in advance that the lender has an option of depositing when the loan comes due.

FTC Info on Online Payday Loans

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Oregon State Information
Legal Status: Legal

Loan Term: Minimum 31 days

Maximum Finance Rate and Fees: 36% APR interest, $10 per $100 of loan amount as fee, up to $30



Key to understanding how much these loans cost a consumer is to understand how to calculate the APR of the loan.

Use this formula: R = I / P x T =Now, let's compare short term loans! =



Finally, Dave Ramsey identifies one thing that you should NOT take a payday loan out for....

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=Credit Reports and Credit Scores=

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=Loans on Prosper =

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'Five Cs Of Credit'
<span style="font-family: Verdana,Geneva,sans-serif;">This method of evaluating a borrower incorporates both qualitative and quantitative measures.

<span style="font-family: Verdana,Geneva,sans-serif;">**Character** refers to a borrower's reputation. This is often a subjective judgment made by the banker about the prospective client. The lender decides if the client is trustworthy with regard to repaying the loan.

<span style="font-family: Verdana,Geneva,sans-serif;">**Capacity** measures a borrower's ability to repay a loan by comparing income against recurring debts. Capacity also refers to your credit history. Do you have a good credit score? The bank will look at your past repayment history

<span style="font-family: Verdana,Geneva,sans-serif;">**Capital** is what the borrower puts toward a potential investment; a large contribution by the borrower will lessen the chance of default.

<span style="font-family: Verdana,Geneva,sans-serif;">**Collateral**, such as property or large assets, helps to secure the loan.

<span style="font-family: Verdana,Geneva,sans-serif;">**Conditions** of the loan, such as the interest rate and amount of principal, will influence the lender's desire to finance the borrower. Conditions refer to the overall economic climate and external environment. What is the intended purpose of the loan? Why do you need the money?





Over the next few days, you will check out these online credit games. When you have given //**EACH**// game a workout, email me a review of the game. Use this format:
 * Playing Around With Credit is No Game....Usually**


 * 1) Name of the game and where it's found online
 * 2) Main idea of the game (how do you play and how do you "win"?
 * 3) What are you learning? What are the main financial issues that the game addresses?
 * 4) Is it worthwhile; can someone really learn about credit playing this game? Explain why or why not.


 * Financial Football
 * Credit Card Simulator

=OOPS. YOU HAVE BAD CREDIT AND LOTS OF DEBT; NOW WHAT?=



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Last Resort: BANKRUPTCY Bankruptcy Basics



Bankruptcy Assignment




=<span style="color: #333333; font-family: arial,helvetica,sans-serif;">You are the TESTMASTER =

=
<span style="color: #333333; font-family: arial,helvetica,sans-serif;">You will create a quiz for your classmates to take over the basics of credit as discussed ad nauseum by Mr. K over the past 73 days. =====

<span style="color: #333333; font-family: arial,helvetica,sans-serif;">You will create a 20 quesion quiz that includes

 * =====5 Multiple Choice questions=====
 * 5 Checkboxes
 * 5 True/False
 * 5 Fill In the Blanks

Customize your quiz with some great questions. Don't try to be tricky or write questions with obscure or trivial answers. You should cover all or most of the main points that we discussed (ad nauseum) in class. When you have completed the quiz, embed it on to your Wikispace page. Then, take someone else's quiz.

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