1 / 8

Consumer Credit & Investments

Consumer Credit & Investments. Opposite sides of the same coin. One side of the coin is…. Credit. The other side is …. Investment. Credit has two general types. Secured credit Like a mortgage or an installment loan. Unsecured credit like a credit card. Secured credit has collateral….

kiara
Download Presentation

Consumer Credit & Investments

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Consumer Credit & Investments Opposite sides of the same coin

  2. One side of the coin is….. • Credit

  3. The other side is …. • Investment

  4. Credit has two general types • Secured credit • Like a mortgage or an installment loan • Unsecured credit like a credit card

  5. Secured credit has collateral… Collateral is something of value that can be taken back if the loan is in default—not paid back

  6. Unsecured credit is issued on your good credit rating only  Your credit rating affects how much you can borrow, what your interest rate will be and how long you can borrow the money for. All based on your credit history of managing your credit in the past– your image in other words

  7. Risk Reward for both Credit & Investment Investments greater the risk = the higher the potential reward Credit greater risk = higher interest rates

  8. Money is like water: the flowage rate is related to the temperature • More liquid = easier to spend (turn into) like cash: it really flows fast • Less liquid (or frozen in a long-term investment) more difficult to turn back into cash & spend

More Related