After making a down payment on a credit purchase, which word describes the cost that is still owed?
Financing fee
Interest
Credit score
Remaining balance
Which of the following is NOT an example of an installment loan?
Credit card debt
Mortgage
Personal loan
Auto loan
Which of these actions would most likely decrease a person’s net worth for at least the next 6 months?
Taking out a personal loan
Paying off credit card debt
Selling investments for a profit
Receiving a bonus at work
Which statement is true of both debit AND credit cards?
Both require you to pay interest on purchases.
Both help you build your credit score.
Both are funded directly from your bank account.
Both can be used to withdraw cash from ATMs.
Sophia opens a credit card with no annual fee, so she assumes that using the credit card regularly will be absolutely free for the next two years while she finishes grad school. Why is her assumption incorrect?
She could be charged interest on any unpaid balance.
The card will charge her a fee every time she makes a purchase.
Credit cards with no annual fee always have hidden fees.
She will still need to pay a monthly membership fee.