Which of the following affects your credit score?
What is the highest FICO credit score a person can receive?
Credit Card A: has an introductory rate of 1.8%; After 6 months the APR jumps to 12% Credit Card B: has an introductory rate of 0%; After 9 months the APR jumps to 26% Credit Card C: has an introductory rate of 0%; After 3 months the APR jumps to 19% * You are applying for a credit card to use for your month-long trip to China. You have budgeted $1000 for the trip. You have looked at your budget and you are confident that you will be able to pay off your credit card for the trip in 4 months. What credit card offer is best for this particular purpose?
When you go to select financing for a loan, you will be looking at:
When calculating one’s credit score, ______________ is the largest percentage category of how an individual’s score is calculated:
In addition to her home, Julie's camper, Ford Focus, and designer purse collection would be viewed as _____________, property pledge as repayment of a loan, by the bank if we were to default on his new mortgage loan that he received:
Which of the following information can you find in a Schumer Box? (Check all that apply)
Which of the following information can you find on your credit card statement? (Check all that apply)
All of the following are good reasons Alyssa could use a credit card except:
If you only make the minimum payment on your credit card it will _____________. (Select all that apply)
An Installment Loan is: (Check all that apply)
Which of the following does NOT impact your credit score? (Check all that apply)
Which of the following actions would NOT cause you to be charged a fee? (Select all that apply)
Match the following
the maximum amount of money a lender will allow you to spend on a credit card or a line of credit | a table that appears in credit card agreements. The box displays basic information about the card's rates and fees. | money paid for the use of money borrowed or invested | the smallest amount your credit card issuer will accept toward your credit card balance each month | |
|---|---|---|---|---|
credit limit | ||||
interest | ||||
Schumer Box | ||||
minimum payment |
Match the following
a debtor, borrows money from a lender with the prmise to repay with interest. | a contract agreement in which a borrower receives a sum of money or something of value and repays the lender at a later date, generally with interest | a number assigned to a person based on their credit history that indicates to lenders their capacity to repay a loan. Also called a FICO score. | a lender, typically a financial institution that lender money to a person who agrees to pay them back with interest. | |
|---|---|---|---|---|
credit | ||||
creditor | ||||
borrower | ||||
credit score |
Match the types of credit to their definitions
An open line of credit that can be used for any purchases as long as youre under the credit limit. Payment amounts vary each pay period based on the size of the debt. | Debt is tied to a specific asset that can be used as collateral and repossessed if borrower doesn't make payments | Used to finance a specific purchase for a specific amount of time. Regular payments are made. | Debt is NOT tied to a specific asset. There is no collateral that can be repossessed if borrower defaults. | |
|---|---|---|---|---|
Installment loans | ||||
Revolving Credit | ||||
Secured Debt | ||||
Unsecured Debt |
A sign of debt problems is only being able to make the minimum monthly payments on bills.
A high debt to credit ratio will negatively impact your credit score
When selecting a credit card, you should always choose a card with the lowest introductory rate.
Lilly has a platinum credit card with her bank. She goes to Greece for vacation and spends $400. If Lilly pays the balance in full, how much interest will she owe?
List 2 factors you should consider when applying for a credit card.
Why would a creditor trust someone with a long credit history vs someone who has never borrowed before?