Ch 5: Ch. 5: Consumer Credit

About This Chapter

The Consumer Credit chapter of this Focus on Personal Finance: Online Textbook Companion Course aligns with the same chapter in the Focus on Personal Finance textbook. These simple and fun video lessons are about five minutes long and help you learn the essential lessons about personal loan sources, credit scores, comparing variable and fixed-rate loans and effective annual rate.

How It Works:

  • Find the lesson within this chapter that corresponds to what you're studying in the Consumer Credit chapter of your textbook.
  •  Watch fun videos that cover the consumer credit topics you need to learn or review.
  •  Complete the quiz after watching each video lesson to test your understanding.
  •  If you need additional help, rewatch the videos until you've mastered the material, or submit a question for one of our instructors.

Chapter Topics

You'll learn all of the finance topics covered in the textbook chapter, including:

  • Defining credit capacity
  • What factors lenders consider when deciding on whether or not to loan someone money
  • Common strategies for improving and protecting your credit score
  • Types of financial counseling available
  • Debt collection and repayment
  • Laws regarding personal bankruptcy
  • What happens when credit cards and identities are stolen
  • Overview of different types of loans
  • How to calculate simple interest

Focus on Personal Finance is a registered trademark of McGraw-Hill and is not affiliated with Study.com.

21 Lessons in Chapter 5: Ch. 5: Consumer Credit
Test your knowledge with a 30-question chapter practice test
Consumer Credit: Types & Differences

1. Consumer Credit: Types & Differences

In this lesson, we'll discuss creditworthiness and different types of consumer credit: installment, non-installment, and revolving credit. You'll also learn about repayment requirements for each and if there's a cost to borrowing the money.

Credit & Debt in Personal Finance

2. Credit & Debt in Personal Finance

Credit and debt are the foundation of any form of finance. This lesson highlights the pros and cons of credit and debt as they pertain to personal finance.

What is a Loan? - Definition, Types, Advantages & Disadvantages

3. What is a Loan? - Definition, Types, Advantages & Disadvantages

Learn what a loan is and some of the most common types of loans that people get. Find out which loans are best for different situations and some of the advantages and disadvantages of getting a loan.

Personal Loan Sources: Types & Overview

4. Personal Loan Sources: Types & Overview

When you need money that you don't have, it is important to consider the several sources you can choose from. You have banks, some online lending sources, and even life insurance policies. You also may have your friends and family, of course.

Credit Capacity: Definition, Ratios & Examples

5. Credit Capacity: Definition, Ratios & Examples

After reading this lesson, you'll have a better understanding of credit capacity and the various ratios used to determine whether or not you can quality for certain loans.

Personal Credit Report: Explanation of Contributing Factors

6. Personal Credit Report: Explanation of Contributing Factors

In this lesson, we'll discuss your credit report and score. You'll also learn about the contributing factors of history, maximization, time, and composition.

Factors That Affect Credit Worthiness

7. Factors That Affect Credit Worthiness

Access to credit to pay for education, a house, a car or other items is an important part of managing personal finances. In this lesson, you'll learn what factors lenders consider when deciding whether to loan someone money and what interest rate they will charge.

Credit Scores: Definition, Types & Calculation

8. Credit Scores: Definition, Types & Calculation

If you've ever applied for a loan or received a credit card, you have a credit score. In fact, you have a few, and they are used in most lending decisions. In this lesson, we'll discuss the different types and talk about how to keep yours strong.

How to Improve Your Credit Score

9. How to Improve Your Credit Score

Every citizen in the United States that has ever applied for a credit card or loan has a credit score. In this lesson, we'll briefly discuss what determines that score, and then discuss common strategies to improve your score.

Comparing Variable & Fixed Interest Rate Loans

10. Comparing Variable & Fixed Interest Rate Loans

Most people, at some point in their lives, will experience the process of getting a loan - perhaps for a house, car, education or something else. This lesson will describe the difference between the two types of interest rates commonly offered.

How to Find Simple Interest Rate: Definition, Formula & Examples

11. How to Find Simple Interest Rate: Definition, Formula & Examples

When we borrow a certain sum of money over a period of time, we agree that we will pay it back, along with a fee, known as the interest owed. Similarly, when we invest a sum of money in a savings account, the account earns us interest. This lesson will show you how to calculate a certain type of interest called simple interest.

Effective Annual Rate: Formula & Calculations

12. Effective Annual Rate: Formula & Calculations

After watching this video lesson, you will understand how the interest rate that financial institutions, such as credit card companies, give you work. Also, learn how this interest rate may be different than the one you actually end up with.

Cosigning a Loan: Definition, Responsibilities & Risks

13. Cosigning a Loan: Definition, Responsibilities & Risks

In this lesson, we talk about what it means to be a cosigner on a loan. We also learn what goes along with being a cosigner, such as the responsibilities and risks.

Identity Theft: Definition & Protection

14. Identity Theft: Definition & Protection

Read this lesson to learn how damaging it can be to you to have your identity stolen. Also learn what you need to do when your identity is stolen along with ways to protect yourself.

Credit Card Theft: Definition & Protection

15. Credit Card Theft: Definition & Protection

The lesson will define the phrase ''credit card theft'' along with discussing various techniques that can be implemented to protect you from having your credit card information compromised.

What Is Credit Protection? - Laws & Services

16. What Is Credit Protection? - Laws & Services

Credit protection is a form of consumer protection that is designed to help preserve credit health for both individuals and businesses. This lesson discusses the laws and services involved in credit protection as well as the FTC's role.

Debt Repayment Issues: Signs & Examples

17. Debt Repayment Issues: Signs & Examples

In this lesson, you will learn what common signs people have when they have problems paying back debt. You will also see how these signs can escalate from one to the other.

Debt Collection: Definition & Practices

18. Debt Collection: Definition & Practices

After reading this lesson, you will learn what businesses can do when a bill is unpaid. You will also see that it will negatively impact you if you don't take care of your debt.

Financial Counseling Services: Types & Process

19. Financial Counseling Services: Types & Process

The lesson will discuss several different types of financial counseling services and how they are set up to assist individuals facing financial troubles. The lesson will also address the processes involve with each type of service.

Personal Bankruptcy: Law & Types

20. Personal Bankruptcy: Law & Types

There are several different types of bankruptcy, but only two are designed for individuals. This lesson explains these two types: Chapter 7 and Chapter 13 bankruptcy.

Creditor Rights in Bankruptcy

21. Creditor Rights in Bankruptcy

Bankruptcy is governed by federal law and allows a debtor the legal right to reorganize, and sometimes discharge, his or her debts. This lesson explains the three main types of bankruptcy proceedings.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
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