Ch 6: Personal Credit & Loans

1. Credit & Debt in Personal Finance

Credit and debt have a spiraling relationship with specific functions in personal finance. Discover aspects of credit, such as installment credit and revolving credit, and learn how credit use creates debt, debt repayment, and builds credit profiles.

2. Factors That Affect Credit Worthiness

Banks use a person's creditworthiness to determine their eligibility and the amount of interest they will pay for credit cards, loans, and other forms of lending. Explore the factors of creditworthiness and take a closer look at capacity, character, conditions, and collateral and capital.

3. Personal Bankruptcy: Law & Types

Personal bankruptcy permits debtors to change or let go of debts they can't pay and allows for creditors to collect at least some of what is owed. Explore the laws and types of personal bankruptcy called Chapter 7 and Chapter 13 bankruptcy.

4. Creditor Rights in Bankruptcy

When bankruptcy is filed by a business or individual, the creditors impacted by the bankruptcy have rights. Understand the definition of bankruptcy, learn the differences between Chapter 7, Chapter 13, and Chapter 11 bankruptcy, and examine the creditor rights under each of these bankruptcy types.

5. What Is Financing? - Definition & Types

When a person is need of financial assistance, they may go to a financial institution and request financing, which is when a financial institution sets up a program to help a lender make a purchase with the promise to repay in an affordable manner. Explore the idea of financing, looking at the different types of financing that are available to consumers.

6. Consumer Credit: Types & Differences

Consumer credit appears in three different types based on creditworthiness, the ability to repay, varying between method of repayment, and interest rates. Examine the details and differences of installment, non-installment, and revolving credit.

7. What Is Credit Protection? - Laws & Services

Credit protection refers to the laws and services that strive to protect consumers from circumstances, including predatory creditors as well as personal issues like unemployment, that can lead to credit problems. Learn about the laws and services that comprise credit protection, and explore the roles of the Bureau of Consumer Protection and credit protection laws.

8. Personal Credit Report: Explanation of Contributing Factors

A personal credit report details an individual's borrowing and repayment history. Explore a common type of credit report known as the FICO score and the four contributing factors used to determine credit worthiness.

9. Personal Loans: Loan Maturity & Interest Rates

Personal loans are those granted for general purposes at the discretion of the applicant, who must go through a particular process to be granted one. Explore the application process, types of personal loans, interest rates, and maturity.