What Is Credit?
What does credit mean?
What is Borrowing money now to pay later?
What is the term for the extra money you pay for borrowing?
What is Interest?
What is a credit score?
What is A number that shows how trustworthy you are with money?
Name two types of financial institutions that people can use to save money.
What is Commercial banks and credit unions?
Which savings plan allows you to withdraw money anytime with few restrictions?
What is a Savings account?
Name one type of credit where you can borrow repeatedly up to a limit (Open-end Credit).
What are credit cards, Store cards, lines of credit?
What does APR represent (what is it)?
What is Annual Percentage Rate (% of interest/charge for borrowing)?
Name one thing that can hurt your credit score.
What is Missing payments?
Which institution might offer loans but often charges very high fees and interest?
What are Payday lenders or pawnshops?
Which savings plan usually offers the highest interest but restricts access to money?
What is a Certificate of Deposit (CD)?
What kind of credit is a car loan or student loan?
What is Closed-End Credit (fixed amount and payments).
If one credit card has a lower APR than another, which is cheaper to use?
What is The one with the lower APR.?
List two factors that affect your credit score.
What is Payment history and amount owed (others include length of history, types of credit, new credit applications)?
What is one mistake to avoid when writing checks?
What is Leaving the amount blank or missing a signature?
What does “liquidity” mean in savings plans?
What is How easily you can get your money out?
Give one benefit and one risk of using credit.
What is?
Benefit: Buy now, pay later;
Risk: Debt and interest charges.
Why is it important to compare different credit offers?
What it To find the best deal with the lowest cost?
Why do people want a good credit score?
What is To get lower interest rates and easier loan or apartment approvals.?
Which financial institution specializes in helping people buy homes?
What is Mortgage companies?
If you need your money in 2 months, which savings option is best?
What is a Savings account or money market account (not a CD)?
What are two important questions you should ask yourself before deciding to use credit, and why?
Can I afford the monthly payments without hurting my budget? (To avoid debt problems)
Do I really need to buy this now, or can I wait and save? (To prevent unnecessary debt)
How does using too much of your credit limit affect your credit score? What is the ideal credit % to use?
It can hurt your credit score because it looks like you're relying too much on credit. What is 30%
You just got your first credit card and plan to use it for small purchases like gas and snacks. What 2 actions should you take over the next 6 months to build a strong credit score—and what 2 actions should you avoid?
Take actions: Pay your balance in full and on time every month, keep your credit utilization low, monitor your credit report.
Avoid: Missing payments, maxing out the card, applying for many new cards.
Why might a credit union be better than a commercial bank for some people?
What is Often lower fees, member-owned, better customer service?
You have $1,000 from a summer job and want to earn the most interest, but you might need to use the money in about two months. Which savings plan gives you a good balance of interest and easy access?
What is a money market account?