HUMS 202 Lecture Notes - Lecture 7: Credit Union, Credit Score In The United States, Mail And Wire Fraud
1 Nov 2016
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Loan: money that is borrowed from a lender that must be paid back. Interest: when you borrow money, you make a promise to pay back money you borrowed plus some extra. Interest is your cost to borrow the money. Bad credit-harder and more costly to borrow money in future. Collateral: something you provide the lender to secure a loan. You pledge an asset you own such as car, to lender to secure the loan. If you don"t repay loan, the lender can take the asset and sell it to help repay your loan. If a person with no credit history asks another person to cosign a loan, the cosigner is equally responsible and has to pay the unpaid loan balance plus interest if the borrower defaults. What is a credit report: is a record of how you paid your debts. Whether you have made payments on time. Whether there is negative info about you in public records.
