MISC
How can you protect yourself form identify theft?
Freeze your credit, use strong passwords, and have your bank monitor your accounts.
Define Loans.
Loans are money that is borrower from a lender that usually comes with interest and intent to pay back within a certain time frame.
What is the definition of credit?
An agreement where a lender provides goods, services, or money to a borrower that promises to pay them back later.
Define debt.
Debt is money, goods, or services that a borrower owns to the lender.
Define interest.
Interest is the percentage cost of borrowing money or the reward for investing it.
If you get a loan for $5000 with an interest rate of 5% and you pay $300 each month, how many months will it take to pay off and how much will you actually paid?
After 100 Months, you will have payed the full price of $30000
Why is rent to-own considered predatory loaning?
They often trap lenders and buyers with high interest and high risk agreements.
Give 3 examples of what good credit will allow you to do?
Buy a car, buy a house, get loans.
Name at least one way to get out of debt.
Debt snowball, debt avalanche, bankruptcy, refinance.
What does APR stand for?
APR stands for Annual Percentage Rate.
What is the lowest possible FICO credit score?
300
What is a Flordia Payday Loan?
It is a loan up to $500 that must be payed back on your next payday.
Name at least 3 factors affect your credit score both negatively and positively?
Late payments, on time payments, length of credit history, debts, and credit mix.
What is the percentage of Americans in debt?
77%
Why are credit card interest rates typically higher compared to other types of loans such as auto loans and mortgage?
Credit cards are unsecured loans, meaning that they don't have physical collateral to back up their loan.
What category of credit score would someone with a score of 820 fall into?
They would fall into the 800-850 exceptional range.
What is a title loan?
It's a loan that uses the title of a car you own (without an active auto loan) as collateral giving the lender full rights to repossess and sell your car if it's not repaid.
Name a type of credit and its pros.
Car loans- You can spread out a large payment over years.
Credit cards- Builds credit history.
Subsidized loans- No interest while in school.
Why is bankruptcy considered a last resort in resolving debt?
Bankruptcy gives the debtor a long-lasting negative impact on a person's credit report.
You invest $1,200 in an account that earns a simple interest rate of 5%. How much money do you earn after 3 years?
$180
Interest = (Starting Amount of Money x Interest Rate x Years)
Interest = (1,200 x 5% x 3)
If a 1 bedroom apartment in florida cost $1600 a month, how much would you have to put away per week to afford it.
(Hint: Use the formula (Monthly Cost × months ÷ weeks).
$400
Define predatory lending.
It's any lending that is unfair, deceptive, or fraudulent that attempts to trick the borrower into abusive or unaffordable terms.
Personal information, employment history, all credit accounts, and payment history.
What is the main difference between filing for bankruptcy and using a credit counseling service?
Credit counseling services help create repayment plans with debtors and negotiate with the creditors. Bankruptcy discharges debts that the debtor isn't able to pay, but at the cost of a negative credit score.