VIDEOS-U3 - CREDIT

40%

60%

80%

90%

$200,000

$300,000

$400,000

$500,000

A gift from the bank

An immediate payment for goods

A measure of trust for future payments

A discount on purchases

You will pay more for purchases

Lenders won't trust you

You will have better credit opportunities

Your reputation will suffer

100-500

300-850

500-1000

700-1200

600

650

697

750

Spend over your limit

Buy unnecessary expensive items

Use a credit card for small purchases and pay bills on time

Ignore credit card statements

A savings account

A long-term investment

A short-term loan

An insurance policy

Your credit score improves

You earn more money

Your financial reputation worsens

You get more credit opportunities

After getting a big loan

When you have a stable job

Never

Early on in life

Income, expenses, and credit history

Capacity, character, and collateral

Interest rates, loan terms, and financial stability

Relationship, reliability, and risk

It refers to the borrower's criminal history.

It is determined by the borrower's level of education.

It is based on the borrower's past loan repayment history.

It includes the borrower's sources and reliability of income.

The borrower's spending habits

How long the borrower has lived in the same place

The borrower's job and level of education

Whether the borrower has a criminal history

To provide a backup source of repayment for the lender

To determine the borrower's capacity to repay the loan

To ensure the borrower's reliability and honesty

To increase the interest rate on the loan

The borrower owns the car immediately.

The lender and borrower share equal ownership of the car.

The lender owns the car until the loan is fully repaid.

The car is considered separate from the loan agreement.

To assess the borrower's overall financial stability

To establish the interest rate and repayment terms

To determine the specific collateral required for the loan

To evaluate the borrower's risk profile and creditworthiness

Secured loans have a higher interest rate than unsecured loans.

Secured loans are only available to borrowers with good credit.

Secured loans require collateral, while unsecured loans do not.

Unsecured loans have a longer repayment period than secured loans.

As a way to assess the individual's character

As a means to recoup their money if the loan is not repaid

As a source of additional income for the lender

As a way to determine the individual's capacity to repay the loan

To determine the individual's creditworthiness

To assess the individual's reliability and honesty

To identify assets the individual can use as collateral

To understand the individual's ability to make the required loan payments

The individual's current income level

Whether the individual has a criminal history

Whether the individual has lived in the same place for a long time

Whether the individual has borrowed in the past and paid back in full

Installment loans have a predetermined length and end date, while revolving loans have a set maximum borrowing limit.

Installment loans always have lower interest rates than revolving loans.

Installment loans are designed to keep borrowers in debt for a longer period.

Installment loans are only used for mortgages and auto loans.

Credit cards

Lines of credit

Personal loans

None of the above

Installment loans have a fixed monthly payment.

Installment loans allow for prepayment without penalty.

Installment loans are always secured by physical assets.

Installment loans are more flexible in terms of repayment.

They may have higher interest rates than revolving loans.

They may not allow for prepayment without penalty.

They may have a longer repayment period than revolving loans.

They may not be available for all types of purchases.

Revolving loans over installment loans.

Installment loans over revolving loans.

Avoiding non-mortgage debt altogether.

Either installment or revolving loans, depending on the situation.

Credit score

Amortization schedule

Investment opportunities

Daily spending log

Installment loans have higher interest rates

Installment loans have lower interest rates

Both have similar interest rates

Credit cards have no interest charges

Always maximize the credit limit

Pay off the balance in full every month

Only make minimum payments

Make large purchases irresponsibly

Installment loans

Revolving loans

Mortgage loans

Personal loans

The fixed monthly payment

The predetermined length of repayment

The changing monthly payment based on total balance

The high interest rates

To avoid the temptation of impulse spending

To maintain a healthy credit score

To save money on credit card fees

To be financially independent

Credit cards have higher interest rates

Credit cards are not accepted everywhere

Credit cards make it easy to overspend

Credit cards have more fraud protection

Debit cards are more secure than credit cards

Debit cards do not require a credit score

Debit cards provide a sense of real-time spending

Debit cards have lower fees than credit cards

Credit cards can be declined during emergencies

Credit cards do not provide immediate access to cash

Credit cards can exacerbate financial problems during emergencies

Credit cards have higher interest rates for emergency purchases

Debit cards have lower foreign transaction fees

Debit cards are more widely accepted globally

Debit cards do not require a credit check

Debit cards do not lead to travel-related debt

You can buy a house without a credit score

Your credit score is not the only factor in your quality of life

You can live a fulfilling life without borrowing money

All of the above

It provides peace of mind during unexpected challenges

It allows you to avoid using a credit card for emergencies

It ensures you have immediate access to cash when needed

All of the above

Credit scores are not required for home loans

Having savings in the bank is more important than a credit score

Credit scores can be established through rental history

Mortgage lenders use alternative underwriting criteria besides credit scores

Debit cards are insured by the FDIC

Debit cards have fraud protection from the credit card network

Banks offer the same level of protection for debit cards as credit cards

There is no difference in protection between debit and credit cards

$896 million

$986 million

$986 billion

$896 billion

Spend less money

Spend the same amount of money

Spend more money

Only spend money on necessary items

Millionaires always use credit cards

Millionaires never use credit cards

Millionaires only use credit cards to build credit

Millionaires don't have any kind of consumer debt

Accumulating wealth

Financial instability

Increased savings

High credit score