CREDIT CARDS
Revolving
TRUE OR FALSE: Someone with a High credit score will pay lower interest rates on loans than someone with a Low credit score.
TRUE
Is an auto loan secured or unsecured?
secured (the car is the collateral)
TRUE OR FALSE: Pay day loans are the best option for when you need to borrow money
FALSE (very high cost)
What does "HAGS" stand for?
Have a Great Summer
What does "APR" stand for?
Annual Percentage Rate (the percent the credit card company charges you for the benefit of receiving a loan from them)
What component of a FICO score has the highest impact (35%)?
Payment History
TRUE OR FALSE: The larger the down payment, the lower the loan cost
TRUE
Which debt repayment strategy is more cost effective: Debt Avalanche or Debt Snowball?
Debt Avalance
GOV TIME! When is our next election?
Next Tuesday (June 2nd)
Ms. McLean has a credit card with a 20% APR. She spends 1,000 dollars on her card one month and then pays the balance in full. How much does she pay in interest?
$0 (no interest when you pay in full)
What is the highest possible credit score?
850
TRUE OR FALSE: Federal student loans have variable interest rates
FALSE
What does the "debt avalanche" method prioritize?
Paying off debt with highest interest first
What is a legal, binding contract that outlines the terms under which one party agrees to rent property owned by another party?
A lease
What is the name if the box that gives borrowers a clear description of the APR, fees, and other major conditions of a credit card?
Schumer Box
Name all 3 of the 5 components of a FICO score
Payment History, Amounts Owed, Length of Credit History, New Credit, and Credit Mix
What is a home loan called?
A mortgage
What is the name/word for the specific timeframe in which a loan must be repaid?
Term
What is the general recommended amount of your credit limit that you should aim to stay under (percentage)
30%