CREDIT

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CREDIT

• Understanding Credit
• Qualifying for Credit
• Establishing Credit
• Types of Loans
• Loan Contract Provisions

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Credit Terms

• CreditorBusiness or Organization that extends
  the Credit
• PrincipalOriginal amount of money borrowed
• InterestA fee paid for the opportunity to use
  someone elses money over a period of time

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www.equifax.com
www.experian.com
www.transunion.com
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SOURCES OF LOANS

• Financial Institutions
• Finance Companies
• PayDay Loans
• Insurance Policy Loans
• Private Loans
• Pawn Brokers
• Loan Sharks

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Loan Contract Provisions

• Balloon Payment Clause
• Large payment due at the end of the loan
• Often leads to refinancing
• Acceleration Clause
• Balance is due if payment is late
• Contact lender if this is a possibility
• Add-On Clause
• Add additional purchases to first contract
• Could repossess all if payments are missed

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Getting the Loan

• Fill out the application
• After approval, read and sign contract
• Decide on Credit Life Insurance
• Right of rescission (home as security)
• Pay installmentscheck, online, automatic
  deduction