APR
What does APR stand for?
Annual Percentage Rate
What is a word we can replace finance charge with?
Interest
What is your balance?
The amount currently charged on your account.
Why do we have credit scores?
To give a snapshot of how likely we are to pay back a loan.
What is the range of FICO credit scores?
350-850
How do you calculate monthly interest (im) from APR?
Divide APR by 1200
Who pays a finance charge and who receives it?
Customer pays, lender receives
If you have a balance of $1,000 and you pay $500, what is your unpaid balance?
$500
Does a hard inquiry effect your credit score?
yes, lowers it
What is 5% of 150?
7.5
If your APR is 26%, what is your monthly interest rate(im) as a decimal.
0.0216666
How can you avoid finance charges?
Pay your balance down to 0 by the end of your billing cycle.
What is a Pro and a Con of making minimum payments on a credit card?
Pro: more money left in savings or checking
don't go into delinquincy
con: pay much more in finance charges over time
Takes a long time to pay of debt
How many factors go into calculating your credit score? Are they weighted equally?
5, no
What percent of 2,540 is 650?
25.59%
Amy has a monthly interest rate of 0.0123 (as a decimal) what is her APR (as a percent)?
14.76%
You have a balance of $1,400 on a credit card with an APR of 21%. If you pay $500 before the end of the current billing cycle. What will be your starting balance on the next billing cycle?
$915.75
What is your credit utilization ratio (as a percent) if you have a credit limit of $10,000 and you have a balance of $3,000.
30%
What are the three main credit reporting agencies?
Experian, Equifax and Transunion
When you transfer your debt (balance) from one revolving account to another.
You might do this for a better APR or because you no longer want to do business with a financial institution.
What is always the introductory APR for credit cards and what determines the APR that you receive after that?
Always 0% after that Credit score, late payments
If you have a balance of $5,670 with and APR of 23%, you make a minimum payment of $240 at the end of a billing cycle, what percent of your payment will go to the finance charge?
43.36% :(
If you have an unpaid balance of $4,000 with a 0% APR what will be your starting balance next month?
$4,000
What two factors effects your credit score the most?
History of payments and Outstanding debt
$6,273.53 :0