Untitled Formative 1524

STREET LAW – CHAPTER 24 – CREDIT AND OTHER FINANCIAL SERVICES

THURGOOD MARSHALL LAW ACADEMY

***Please complete the full heading. 1 point will be deducted for each missing field.

Name: ____________________    Course: ____________________

Date: ____________________    Period: ____________________

Ch. 24(2) An Introduction to Credit (125 points)

Learning Intention: I am learning introductory information about the use of credit.

Success Criteria: I can read pp. 274–278 and explain what it means to use credit; describe the basic roles of creditors and debtors; contrast the consequences of defaulting on secured credit and unsecured credit; list the types of information a consumer should investigate when comparing credit card offers; describe how interest is calculated; explain what a consumer can do if a credit card is lost or stolen; describe steps a consumer should take if there is a billing error on his or her statement; and state how consumers can determine if they are using too much credit.

***Please underline your answers.

DO NOW define the terms:

creditor,

debtor,

finance charge,

interest,

unsecured credit,

secured credit,

collateral,

default,

annual percentage rate (APR).

1. explain what it means to use credit;

2. describe the basic roles of creditors and debtors;

3. contrast the consequences of defaulting on secured credit and unsecured credit;

4. list the types of information a consumer should investigate when comparing credit card offers;

5. describe how interest is calculated;

6. explain what a consumer can do if a credit card is lost or stolen;

7. describe steps a consumer should take if there is a billing error on his or her statement;

8. state how consumers can determine if they are using too much credit;