Chapter 7 a - Chapter 7: Assessing and Securing Your Credit...

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Chapter 7: Assessing and Securing Your Credit Chapter Objectives Provide a background on credit Describe the role of credit bureaus Provide a background on identity theft Describe identity theft tactics Explain how to avoid identity theft Discuss how to respond to identity theft Background on Credit Credit: funds provided by a creditor to a borrower that will be repaid by the borrower in the future with interest Types of credit Non-installment credit: credit provided for a short period, such as department shore credit Installment credit: credit provided for specific purchases, with interest charged on the amount borrowed Background on Credit (cont’d) Revolving open-end credit: credit provided up to a specified maximum amount based on income and credit history; interest is charged each month on the remaining balance Advantages of using credit Helps build a good credit score Eliminates the need for carrying cash or writing checks Background on Credit (cont’d) Disadvantages of using credit
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This note was uploaded on 02/22/2012 for the course FINANCE 250 taught by Professor Maryevans during the Spring '12 term at Rutgers.

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Chapter 7 a - Chapter 7: Assessing and Securing Your Credit...

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