Debt & Credit Basics
The percentage of available credit you are using called?
What is a Utilization Score
What type of loan is used specifically to purchase a home?
What is a mortgage?
What is one common upfront cost of renting?
What is a Security deposit
What do we call a written plan for how you’ll spend money each month?
What is a Budget
What is the maximum amount you’re allowed to spend on a credit card called?
What is a Credit Limit?
Formula that compares all your monthly debt payments to your gross monthly income?
What is debt to income ratio
What type of loan is designed to help someone with no credit or low credit improve their score?
What is a credit builder loan?
What is an advantage of renting?
What is Maintenance repairs included
Are groceries considered a need or a want?
What is a Need
What is the smallest payment you must make each month to stay in good standing?
What is a Minimum Payment?
Type of debt used to purchase something that increases your net worth or improves your life?
What is Good Debt
In the compound interest formula, what does P represent?
What is a Principal? (the starting balance or loan amount)
What is one recurring cost of owning a home besides mortgage payments?
What is Homeowners insurance, PMI, utilities, or maintenance.
What budgeting method assigns every dollar a specific purpose?
What is Zero-based budgeting?
What is the three-digit score used to predict how likely you are to repay a loan?
What is a FICO score? (Aka a credit score)
Legal process that allows individuals who cannot repay their debts to seek relief?
What is Bankruptcy
What type of loan is commonly used to pay for vacations or home improvement projects?
What is a Personal loan?
What percent of a home's purchase price is typically required for a down payment?
What is 3.5%–20%.
What type of expense stays the same every month?
What is a Fixed Expense?
What is the yearly cost of borrowing money on a credit card, expressed as a percentage?
What is APR? (Annual Percentage Rate)
What is it called when multiple debts or financial items are combined into one?
What is Consolidation
In the formula A = P(1 + r)^t, what does t stand for?
What is Time in years?
What type of mortgage keeps the same interest rate for the life of the loan?
What is a Fixed-rate mortgage.
In the 50/30/20 budgeting rule, what percentage goes to wants?
What is 30%?
Name one of the three major credit bureaus.
What is Experian, Equifax, or TransUnion.