PERSONAL FINANCE
5th Edition
ISBN: 9781308498706
Author: Kapoor
Publisher: McGraw Hill
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Question
Chapter 7, Problem 7.1PQ1
Summary Introduction
To discuss:
Sources of consumer credit.
Introduction:
Credit is the way to get money in advance to fulfill your needs and then returning that amount in some future date.
Expert Solution & Answer
Explanation of Solution
Sources of consumer credit are:
- Commercial banks: It offers the widest variety of loan. They normally give loan to the person with established credit history.
- Consumer finance companies: They give loan to the people who have bad credit history and have nothing to use as a mortgage because of which they land at high rate.
- Credit unions: Credit unions make unsecured loans and only give loans to their members only if a person is not member of the credit union then he/she will not get loan.
- Life insurance companies: They generally give loan by taking insurance policy as collateral. They deduct amount of loan if death and maturity arrives early than maturity date.
- Federal savings bank: They lend generally to the creditworthy customer. Customer generally needs to use collateral to get loan. Loan rate very according to the size and repayment period of the loan.
Conclusion
Hence, these are sources of consumer credit.
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Chapter 7 Solutions
PERSONAL FINANCE
Ch. 7 - Prob. 7.1PQ1Ch. 7 - Prob. 7.1PQ2Ch. 7 - Prob. 7.2PQ1Ch. 7 - Prob. 7.2PQ2Ch. 7 - 3. Distinguish among the adjusted balance,...Ch. 7 - Prob. 7.2PQ4Ch. 7 - Prob. 7.3PQ1Ch. 7 - Prob. 7.3PQ2Ch. 7 - Prob. 7.3PQ3Ch. 7 - Prob. 7.4PQ1
Ch. 7 - Prob. 7.4PQ2Ch. 7 - Prob. 7.4PQ3Ch. 7 - Prob. 7.5PQ1Ch. 7 - Prob. 7.5PQ2Ch. 7 - Prob. 7.5PQ3Ch. 7 - Prob. 7.5PQ4Ch. 7 - Prob. 1FPPCh. 7 - Prob. 2FPPCh. 7 - Prob. 3FPPCh. 7 - Prob. 4FPPCh. 7 - Prob. 5FPPCh. 7 - Prob. 6FPPCh. 7 - Prob. 7FPPCh. 7 - Prob. 8FPPCh. 7 - Prob. 9FPPCh. 7 - Prob. 10FPPCh. 7 - Prob. 11FPPCh. 7 - Prob. 12FPPCh. 7 - Prob. 13FPPCh. 7 - Prob. 14FPPCh. 7 - Prob. 15FPPCh. 7 - Prob. 1FPACh. 7 - Prob. 2FPACh. 7 - Prob. 3FPACh. 7 - Prob. 4FPACh. 7 - Prob. 5FPACh. 7 - Handling Harassmentfrom Debt Collection Agencies....Ch. 7 - Prob. 7FPACh. 7 - Prob. 8FPACh. 7 - Prob. 9FPACh. 7 - Prob. 1FPCCh. 7 - Prob. 2FPCCh. 7 - Prob. 3FPCCh. 7 - Prob. 1CCCh. 7 - Prob. 2CCCh. 7 - Prob. 3CCCh. 7 - Describe any aspects of your spending habits that...Ch. 7 - Prob. 2DSD
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