Housing
What is the average price of a house in the us?
500,000$
Why do lenders look at credit reports?
To decide if you are a risky or safe canadite for a loan
If your car loan term is longer, is it going to be a higher monthly payment or lower?
Lower
What is predatory lending?
gives borrowers unfair loan terms, including high-interest rates, high fees
What is the difference between the Snowball method vs the Avalanche method?
snowball : small balance debts first. The avalanche : high-interest first.
Does paying your rent affect your credit score?
Yes
How long does it take to get a credit score?
3-12 months
What is the average price of a new car?
40,000$-50,000$
What is collateral?
something given as security for repayment of a loan
What is a cosigner?
Someone who agrees to be legally responsible for a debt if the person paying off the loan does not pay.
Why is it important to have a good credit report when leasing or buying a house?
more likely to get approved, helps lender understand your likelihood of paying back.
What companies calculate credit scores?
Equifax, TransUnion, and Experian.
Does credit matter when applying for an auto loan?
Yes(they want to see if you will pay them back and it decides APR)
How often should you check your credit score?
Once a year
What are the cosigner's responsibilities?
The cosigner is responsible for paying the debt if the person does not pay it themselves.
What is an ARM (Adjustable Rate Mortgage)
the interest fluctuates with the market, your monthly payment can change
What percentages make up your credit score?
payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%), and credit mix (10%).
What is the difference between a certified pre-owned and a pre owned
(CPO)come with manufacturer warranties, pre-owned cars may not
What is foreclosure?
legal process where lender takes back the house and sells it if you do not pay your mortgage
How does credit score affect APR?
The higher the credit score, the (better %), the lower(higher%)
Does having a higher credit score mean you are more likely to get a house or apartment when you apply?
Yes, because they are more likely to pay it back
What are 2 reasons you should review your credit report regularly?
monitor how different factors are impacting the score and to check if the report is accurate
What does your lease payment typically cover?
The depreciation of the vehicle (loss of value) plus interest
Does APR change your monthly payment?
Yes (the higher your APR the higher your monthly payment will be with the same terms
A strategy for getting out of debt is...
Cut unnecessary spending, create a budget, pay more than the minimum, etc.