Financial Studies Unit 1 Topic 6

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  • Created by: rswift91
  • Created on: 13-01-21 11:39
Why do people borrow money?
To get goods or services they do not currently have the funds for
1 of 15
What does it mean for debt to be unsecured?
That the lender has no claim over the goods
2 of 15
What does consumer credit mean?
Taking out a borrowing product
3 of 15
4 factors to consider when borrowing money
Repayment Affordability
How to manage the debt
Costs and Risks
The length of the borrowing
4 of 15
Two factors which encompass the cost of borrowing
Interest and fees
5 of 15
If an APR is advertised what % of applicants must get it?
51%
6 of 15
Overdrafts only apply to what account?
Current Accounts
7 of 15
What is the purpose of an overdraft?
Bridge funds between payments and income
8 of 15
True or False: Overdrafts can have a flexible EAR
True
9 of 15
Four parties involved with credit card payments
Cardholder
Merchant
Merchants bank
Cardholders provider
10 of 15
Visa and Mastercard are both what?
Payment organisations that manage networks connecting acquirers and issuers
11 of 15
True or False: The card issuer does not charge interest between the payment made and the payment due date?
True
12 of 15
Different credit card types
0% interest on balance transfers
Low APR
Cashback cards
Reward Cards
Charity Credit Cards
First Credit Cards
Premium Credit Cards
13 of 15
What is a charge card?
A card which must be repaid in full every month
14 of 15
True or False: You cannot make overpayments on a loan
False
15 of 15

Other cards in this set

Card 2

Front

What does it mean for debt to be unsecured?

Back

That the lender has no claim over the goods

Card 3

Front

What does consumer credit mean?

Back

Preview of the front of card 3

Card 4

Front

4 factors to consider when borrowing money

Back

Preview of the front of card 4

Card 5

Front

Two factors which encompass the cost of borrowing

Back

Preview of the front of card 5
View more cards

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