Credit is Key
This type of credit cards typically charge the highest interest rates on purchases.
Retail charge cards
As a percent of your take-home pay, your monthly credit payments should not exceed what percent?
20%
This is the type of interest rate that changes periodically.
Variable rate
What do you do if there is an error on your credit report?
Request a correction
What is something you can do as a high school student to help you establish credit.
Open a checking and savings account
What is the charge you might receive for paying off a loan early.
Prepayment penalty
Give an example of something that would be requested in a typical credit card application.
Using this type of card is equivalent to using cash.
Debit card
Who issues credit reports on individual borrowers?
Credit bureaus
What is the number one thing you need to do to build a strong credit history (this also accounts for the biggest part of your credit score)?
Make your payments on time
This source of consumer loan typically charges the highest rates are are regulated by the states in which they operate.
Consumer Finance Companies
What secures most single payment loans?
Collateral
This source of consumer loan typically offers the most favorable terms for borrowers.
Credit Unions
This type of loan is repaid in a series of fixed, scheduled payments rather than a lump sum.
Installment Loan
When is it less expensive to use your savings to make a large purchase than to get a loan?
When the interest rate on your savings is lower than the rate of the loan
What can you do to have an interest-free loan from your credit card company?
Pay off the full balance on or before the due date
What are the "5 C's of Credit"?
Character, capacity, collateral, capital, and condition
This is the type of loan you would get if you have an unhealthy credit situation cause by overusing credit.
Consolidation loan
These two types of student loans do not have to be repaid until after you graduate from college.
Direct and Perkins
This is the legal claim that allows creditors to liquidate loan collateral.
Lien