personal business and finance

Question 1

what is a charge card?

Answer 1

allows customers to delay payments for a short amount of time.

Question 2

what are the positives of a charge card?

Answer 2

reduce being in debt

allows a short period of credit

Question 3

What are the negatives of chargecards?

Answer 3

must be paid in full each month

Question 4

what is a store card?

Answer 4

the retail outlet allows customers to delay payment

Question 5

what are the positives of a store card?

Answer 5

interest-free

Question 6

what are the negatives of a store card

Answer 6

encourage overspending

customer can get into debt

Question 7

what is CHAPS?

Answer 7

the system allows payment from one bank to another bank

Question 8

what are the positives of CHAPS?

Answer 8

no limit on the amount of money being transferred

Question 9

what are the negatives of CHAPS?

Answer 9

fixed charge per transaction

Question 10

what is direct debit?

Answer 10

the third party getting money from the account

Question 11

what are the positives of direct debit?

Answer 11

easy to make a regular payment

Question 12

what are the negatives of direct debit?

Answer 12

cant go in an overdraft if you don’t have money in your account

Question 13

what is standing order?

Answer 13

agreement with the bank to withdraw a fixed amount of money to a third party

Question 14

what are the positives of standing order?

Answer 14

don’t need to remember to make regular payments

the same amount paid each time

Question 15

what are the negatives of standing order

Answer 15

payment is taken if there is no money on the card causes the overdraft
payment will be made unless it’s cancelled

Question 16

what are the different types of current accounts?

Answer 16

basic,standart,student,packed premium

Question 17

what is the basic account?

Answer 17

for people who have a poor credit rating
will not offer overdraft
limited feature

Question 18

what is a student account?

Answer 18

for students
agreed overdraft limit
free railcard or cash

Question 19

what is a standard account?

Answer 19

the normal account offered to people with reasonable credit rating

Question 20

what is packaged premium?

Answer 20

offers additional features eg. credit card protection
cashback on certain transaction
additional charge on this account

Question 21

positives of packaged premium?

Answer 21

offers a wide range of facilities
no charges in a credit balance
convenient in receiving regular payment

Question 22

negatives of packaged premium?

Answer 22

additional monthly charge

Question 23

positives of basic account?

Answer 23

available for customers with low credit rating

Question 24

disadvantages of basic account?

Answer 24

limited facilities
no overdraft
no debit card

Question 25

what is the advantage of overdraft?

Answer 25

can be paid without penalties | provide short term solution

Question 26

what is the disadvantage of overdraft?

Answer 26

not the cheapest form of borrowing | when used interest charges are high

Question 27

what is the advantage of a personal loan?

Answer 27

useful when looking to purchase specific items planning payments make it easier have to prove that they can pay the money back

Question 28

what is the disadvantage of a personal loan?

Answer 28

not useful for a short term loan

Question 29

what is the advantage of higher purchases?

Answer 29

spread the debt of an expensive ute over a long period of time allows customers to buy something that they cannot afford

Question 30

what is the disadvantage of higher purchase?

Answer 30

agreements can be manipulative

Question 31

what is the advantage of mortgages?

Answer 31

allows an individual to spread the cost of a house over 25 year period

Question 32

what is a disadvantage of a mortgage?

Answer 32

if not repaid u can lose homeland and affect card rating

Question 33

what is the advantage of payday loans?

Answer 33

help solve shortterm cashflow problem

Question 34

what is the disadvantage of a payday loans?

Answer 34

the interest rates are high