Money issues
How percentage of Americans die in debt?
75%
What is intrest?
A certain amount of money you owe the bank for borrowing the banks money.
How do you build credit score with a credit card?
Paying your debt off monthly, not being late can help boost your credit score.
What is a dead beat?
Someone who pays their payment in full.
What is compensation?
Compensation is when you go to borrow money from the bank you can list your house or car for example. Meaning if you don't pay back the money you owe the bank rightfully has the rights to take whatever one you listed to sell to go towards your debt.
What percent of Americans can't cover a $400 emergency?
30%
What is the average interest rate?
14.51%
What is a bad credit score?
650 and lower
What is a transacter?
Pays full bill every month.
T or F
You can get rewards having a credit card.
True
What should you be aware about being a Co-signer?
If you become a Co-signer for someone and they don't pay of that debt its all your responsibility.
How does the bank make money off a deadbeat?
A bank makes money from a deadbeat by a person swiping their card. There is typically a fee and that fee goes to the bank.
What is a good credit score?
700 and higher
What is a Revolver?
Doesn't pay their full bill pays minimum requirement.
When was the credit card invented?
What percentage of Americans who have credit card debt won't be able to pay it off within a year?
70%
How does interest work?
When a person borrows money they have to pay a "fee" which is typically a certain percentage out of the amount of money you are borrowing. When it gets time to pay you pay the interest as well. Every time you pay the minimum monthly payment your interest rate keeps going up to the point where you paid more in interest then it the amount you had borrowed.
T or F
Your credit score will be checked if you rent out a house?
True. If you rent a house or Apartment your landlord will check your credit score to see how reliable you are on paying monthly payments/bills.
Which is the biggest Revolver?
Low income or high income?
Low income, it's a little harder for them to pay the full monthly payment due to having a very low income. So the bank will make more off of them due to interest rates going up each month.
T or F
It's way easier to get a loan if your a Co-signer and your paying off their debt.
False- It's a lot harder to get a loan if you are paying off the person's debt.
Can you lower your interest rate?
You can at the same time you can't. If you pay your monthly payment in full then you can avoid interest rate and fees. Paying 3% of your full bill or the lowest amount possible you will not be able to avoid your interest rate and fees.
How does the bank make money?
The bank makes money through your interest
T or F
The amount of debt or money you owe will never affect your credit score?
False, owing a lot of money or having major debt will affect it horribly. It shows you don't pay things on time the best and always go the longer route an pay more money.
is it good to be a dead beat?
100% yes, if you can be a dead beat then be it. You would want to go that route because you don't have to worry about being in debt, dying in debt, or having to pay a lot of interest rates or fees. You can avoid those by being a dead beat.
What are the three C's?
-Capacity
- Capital
-Character